Enrique Chang,Executive Vice President & Chief Investment Officer
The U.S.economy continues to muddle along—not in recession, but far from the level of growth and dynamism we’d like to have. Meanwhile, global economic growth has slowed as the world anticipates a solution to the European sovereign debt crisis. In short, we are in a period of uncertainty, not only about how key events will unfold but the timing associated with their future progress and resolution.
Political Stalemate in the U.S.
The Congressional super committee on theU.S.budget failed to reach any kind of meaningful solution or compromise on the deficit and taxation. As a result, we’ve now entered a period—leading up to the presidential elections next November— where very little meaningful progress is going to be made on these key issues. That creates fundamental economic uncertainty that financial markets and investors dislike. Over the course of the coming (Republican) primary and presidential election