In one of my daily blogs on www.switzer.com.au, I proposed the idea that 2013 would be the year of living dangerously. Regular readers would know I’ve been tipping for some time that the US and China are on the comeback trail — economic growth-wise — and these two economies, the two biggest in the world, will underpin stock price improvements.
Adding to the better economic outlook ahead, Japan is now prepared to spend its way out of decades of economic stagnation, and even Europe is showing signs of a quicker return to growth than the experts thought some months ago.
In fact, the recent fall in the Oz dollar to 104 US cents has been linked to “growing evidence of an emerging economic recovery”, Dow Jones Newswires reported. Our currency has copped it because, to put it simply, we look like we’ll be growing slower than expected and Europe could be faster than tipped.