These predictions are, of course, from the opinion and point of view of Grace Century; we therefore recognize that some are contrary to other opinions on the state and upcoming state of the Markets.
Ras Al Khaimah, UAE (PRWEB) November 26, 2013
The research team of UAE based international research and private equity company, Grace Century, FZ LLC, publishes its annual predications relating to global assets, financial environments, and markets, prior to the start of the coming year. According to a Grace Century spokesperson, 2013’s predictions were very accurate with the exception of gold. Some of the insights included in the company’s popular annual report, which is available to Grace Century members only, include:
Global and Regional Financial Predications for the Banking Sector: With the preferential disparity between borrowing rates and the cost of capital, we continue to see an improving sector. Additional mergers are likely as assets and balance sheets continue to be fortified.
Global and Regional Financial Predications for Currency/Exchange Rates: Despite rising rates in 2013, we saw an overall weakening of the U.S. Dollar. Scott Wolf, Director of Research for Grace Century commented, “We see the U.S. Dollar weakening and U.S. rates rise. Again, we emphasize that this is against the norm and contrary to mainstream analysts. We said this last year and we were right. The weaker the dollar becomes, the less attractive dollar-denominated asset class becomes. It’s all about identifying the dog and the tail (as in which one is wagging which).” Grace Century also expects the US Dollar to weaken against the main crosses of Euro/$ to $1.40-$1.45 and U.K Sterling to $1.70. “Look for an early surge in the Euro vs. the Yen to $1.40. According to Wolf, this should preempt a Stock market correction. Finally, a U.S.10 year bond target of 3.25%-3.5% seems possible.
Global and Regional Financial Predications for Stock Market Indices: Grace Century has determined that the market has gotten way ahead of itself and has been the benefactor of artificially manipulated rates. Dividend hunters have had nowhere else to go but to dividend stocks. “This is a dangerous scenario,” says Wolf. “There are people under the market waiting, which will underpin any correction. The simple fact is that the Equity Market has quadrupled in 4 years. It’s actually a very scary scenario.”
Global and Regional Financial Predications for Real Estate: The Market of course is contingent upon interest rates with the exception of locations like Dubai. Not only has Dubai bounced back, but it has also been the benefactor of every other market in the region becoming less attractive. Locations like Ras Al Khaimah are building hotels as fast as they can due to the fact that traditional tourist destinations, like Egypt and other popular locations, continue to have unrest.
Global and Regional Financial Predications for Gold & Oil: Traditionally influenced and the yellow sister of inflation, we see real rates stagnant. The world unrest will continue to underpin gold and we really don’t see any reason to buy it or sell it. As far as Oil, alternative sources and reduced demand will continue to pressure Crude with a target under $75.
Wolf adds, “These predictions are, of course, from the opinion and point of view of Grace Century; we therefore recognize that some are contrary to other opinions on the state and upcoming state of the Markets.”
About Grace Century, FZ LLC
Grace Century FZ LLC is an International research and private equity consultancy located in Ras Al Khaimah (north of Dubai) in the United Arab Emirates (UAE). Grace Century specializes in “game-changing” life science and health related private equity projects.