iShares Market Commentaries

Weekly Market Matters

Russ Koesterich - iShares Global Chief Investment Strategist



Week of December 17th - 2012 Outlook : Three Scenarios for the Coming Year

Economies and markets ended 2012 having narrowly sidestepped a number of potential stumbling blocks, including a European banking crisis, a Greek exit from the euro, a Chinese hard landing and an indecisive US election. While Europe spent much of the year teetering on the brink of another crisis, aggressive action by the European Central Bank (ECB) and some tentative progress toward a banking union obviated the worst-case scenarios. Economic growth remained weak, but the lack of a crisis coupled with unprecedented monetary stimulus was enough to produce a good year for most asset classes. Ironically, as the year comes to a close investors are most worried about the United States, where the prospect of premature and aggressive fiscal tightening risks sending the economy back into recession. Read iShares Market Perspectives.