Institutional Investor (August 23)
“With an influx of cash from nontraditional investors, average late-stage valuations could hit $1 billion this year, according to PitchBook,” which attributed the surge in “valuation growth to a positive economic outlook and cash influx from nontraditional investors, including mutual funds, hedge funds, sovereign wealth funds, and corporate venture capitalists.”
Tags: $1 billion, Cash, Economic outlook, Hedge funds, Influx, Investors, Late-stage valuations, Mutual funds, Nontraditional, PitchBook, Sovereign wealth funds, Surge, VC
New York Times (March 22)
“The U.S. economic outlook again “has a dispiritingly familiar ring to it.” It looks unlikely that “this year’s early Easter” will “boost consumer spending after a brutal winter.” Despite optimism, Easter shopping and warmer weather have failed for several years proven “a sure catalyst for growth.” For that matter, it’s increasingly unclear where that catalyst will come from.
Tags: Boost, Catalyst, Consumer spending, Dispiriting, Easter, Economic outlook, Growth, U.S., Warmer weather
Financial Times (January 3, 2011)
Last year, the UK adopted austerity measures which slashed government spending and increased the value added tax to 20%. Most leading economists believe this big gamble to reduce the deficit is “likely to pay off.” A Financial Times survey of 78 leading economists concludes the recovery has “sufficient momentum to avoid a deep double-dip.” Only 13 of the surveyed economists believe the government will need to come up with an alternative plan to combat a downturn in the economy.
Tags: Austerity measures, Economic outlook, UK, VAT
Economist (December 9)
A divergence in growth between “the world’s big three” during 2011 may “compound the risks in each one.” In Europe, growth will slow as governments tighten spending. The euro zone will also face continued stress over both its currency and banking model. The U.S. could grow at a rapid 4% thanks to new tax cuts, but face inflationary pressure and even “a bond-market bust” as the deficit soars. Emerging markets will walk a tight-rope between risking inflation by doing too little and dampening growth by doing too much. “Either way, the chances of a macroeconomic shock emanating from the emerging world are rising steeply.” For the record, the Economist still views Japan as “an economic heavyweight,” but believes Japan is less likely to impact the global economy with surprises in 2011.
Tags: 2011, Economic outlook, Emerging markets, Europe, Japan, U.S.