Welcome!

Mobile IoT Authors: Liz McMillan, Elizabeth White, Kevin Benedict, Ed Featherston, Pat Romanski

News Feed Item

BMO Private Bank Report: U.S. Economy Reinvigorated Despite Fiscal Cliff Uncertainty

- Rise in housing prices hints that Americans are ready to start spending

CHICAGO, Nov. 26, 2012 /PRNewswire/ -- According to BMO Private Bank's December Outlook for Financial Markets Report, the U.S. economy is showing positive signs of continued recovery with a variety of sectors witnessing significant growth.

According to the report:

  • Corporate profits are at their highest levels since the early 1950s, with net profit margins at 10.7 percent 
  • Both 401(k) plans and home prices are rising, leading to a boost in consumer confidence
  • The S&P 500 has rallied more than 60 percent since the first quantitative easing announcement at the end of 2008
  • Mortgage rates cascaded to all-time lows in Q3, expanding home affordability by approximately 25 percent
  • Retail sales are up nearly five percent year-over-year

"Although Federal Reserve Chairman Bernanke's monetary plan has taken some time to unfold, we're beginning to see evidence that it is working," said Jack Ablin, Chief Investment Officer, BMO Private Bank. "If interest rates remain as low as they currently are, they will boost equity and housing values and embolden consumers. That, in turn, will boost corporate profits and employment."

The Fiscal Cliff

As the January 2013 amendment deadline looms, investors are feeling wary that the U.S. may lose its AAA credit Fitch Rating if the Fiscal Cliff is not properly addressed. The BMO Private Bank Report notes:

  • Treasury bonds have been on the rise with traders concerned that the government will be forced to step in to fill the fiscal void
  • With a full-percentage-point yield differential between two-year and 10-year notes, investors are concerned that another recession may be on the horizon if no progress is made on the Fiscal Cliff
  • Several state and local governments continue to struggle to address their own fiscal conditions

Equity Markets Show Volatility

Equity markets fell in the third quarter of 2012, with investors concerned about increased regulation and higher taxes.  The financial and energy sectors were affected the most.

  • Given legislative uncertainty and slowing growth, U.S. equity markets retreated about 5.5 percent
  • The S&P 500 fell 3.3 percent in the three sessions immediately following the U.S. election, and annual profits declined in Q3
  • Yield-oriented telecom companies dropped more than four percent in the days following the election.
  • Nearly half of Europe's Stoxx 600 companies failed to beat analysts' profit expectations.

China and America Share Challenges

According to the report, both the U.S. and China – the world's first and second largest economies – face income inequality; this, in turn, is affecting economic growth.

"Severe income inequality is not economically sustainable and consistent inequality impairs economic growth," said Mr. Ablin. "At home, after decades of productivity gains through global outsourcing investment in technology, the difference between America's wealthy and everyone else widened. China, in particular, also faces this challenge and could consider adopting a stronger social safety net to reduce inequality and promote consumption."

Mr. Ablin notes that, while globalization has gone a long way towards bringing two billion people out of poverty, income differentials within countries have widened in the international arena.

Outlook for 2013

Looking ahead to 2013, investors can expect a series of rules and regulations aimed at domestic banks and energy companies to take effect. Financial stocks are now trading at a 19 percent discount, making them fairly priced when taking into account the prospect of new regulations. Energy stocks are trading about one per cent above their historical norm, making them overpriced.

The full report can be found at: www4.harrisbank.com/Insights/Publications

SOURCE BMO Private Bank

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
Announcing Poland #DigitalTransformation Pavilion
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, added the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor analytic...