The chief economist of
Growth will slow from 5 percent two years ago and 3.7 percent last year to 3.0% in 2012, said
Dragging down the world economy will be
The United States’ economy will growth slightly better than last year’s 1.8 percent growth. He projects growth of 2.5 percent. The IMF, on its own, projects that
For asset managers, getting returns for clients will mean moving back to smart stock selection, said
But it will not be a “binary switch,’’ said Baum. Investors won’t just move overnight out of bonds and bond funds, into which they’ve poured
The kinds of stocks that should attract the most attention, said Tineke Frikkee, lead manager of the
“Dividend yield will be the key driver of total return in the current environment,’’ she said of slow growth and bouts of volatility in prices of stocks and other securities.
Stocks that do not pay dividends are inherently more volatile, she notes. A study of stocks in the Standard & Poor’s 500 since 1975 shows, for instance, that non-dividend paying stocks are 60 percent more volatile in their price swings than dividend-paying stocks.
In addition, in the last 40 years, dividend growth and dividend yield have accounted for 77 percent of the total return of stocks, Frikkee said.
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