G E ORG E V A S S E T M A N A G E M EN T
2013 December 3rd
MANAGEMENT VIEW
We are not really worried about the next 6 to 12 month ahead for several reasons. First, there is no inflation and the quantitative easing initiatives have none of the side effect that some economists are talking about. The US economy is still enjoying a 2% growth rate and is creating jobs. Moreover, the energy price decrease and the increase in real estate assets prices have generated some credit facilities enhancement while wages are not increasing. The main concern remains the consumption. It tends to stagnate which weight on corporate investment ambitions. The balance remains fragile: a stronger recovery may at any time assert, as a weakness may occur. In this ultimate case, the European markets could be weak. We have to emphasize that long rate remain low and the gold price is weakening, as for raw materials. This will generate on the long run some positive effects. Short term is stressful. On a global perspective, the withdrawal of the US on the Iranian topic leaves room to Russia and a risk of atomic proliferation. Turkey and Saudi Arabia should react if Iran develops the nuclear weapon. Geopolitics will experience some developments in the future.
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