Midwest and Michigan Economic Outlook

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18 Νοε 2013 (πριν από 3 χρόνια και 6 μήνες)

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Midwest and Michigan Economic Outlook


Dennis A. Johnson, CFA

Chief Investment Officer

Comerica Asset Management Group

An Asset Management Organization

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Headquartered
in Birmingham, Michigan, Comerica Asset
Management Group
manages an estimated
$
24.2
billion in client
assets as of June 30, 2012.



Comerica Asset Management Group is the largest investment
management firm in
Michigan
according to a recent survey by
Crain’s Communications.


This material is for use in one
-
on
-
one presentations with eligible investors only.

Midwest Economy

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Midwest labor markets improving;
unemployment rate below the national
average

4

Midwest manufacturing economy is
outperforming the
national average

Source: Federal Reserve Bank of Chicago

5

Export demand for agricultural
commodities is good for the
M
idwest
economy

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Midwest housing prices are rising

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Midwest housing market has bottomed

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Moderate inflation pressure in the Midwest

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Michigan Economy

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Michigan’s economic growth is
outpacing 88% of the U.S.

11

Michigan’s economic recovery is
continuing

Source: Comerica Economics Department

12

Michigan’s fiscal position has improved


Fiscal year 2011/2012 General Fund/General Purpose
Budget resulted in a surplus of $696.8 million.



Fiscal year 2011/2012 School Aid Fund Budget resulted
in a surplus of $251.9 million.



A budget surplus is projected in the 2012/2013 Budget.



Source: Michigan Senate Fiscal Agency


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Auto sales are recovering

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Automobiles are more affordable

Source: Comerica Economics Department

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Manufacturing in Michigan is picking up

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Detroit is on the “road” to recovery

Source: Comerica Economics Department

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Western Michigan is recovering, as well

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Summary


The recovery of both the Midwest and Michigan
economies is expected to continue.


Job growth should continue.


The recovery in the housing market should continue at a
modest pace.


Fiscal conditions in Michigan should continue to improve
and will be enhanced by an improvement in the financial
performance of Detroit.

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Comerica’s Investment Point of View

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Investing for the future


Pay greater attention to fixed income investments in the
current low interest rate environment.


Favor short to intermediate term bonds, high yield, emerging
market debt denominated in local currency, high quality municipal
bonds.



Equities in general and international equities specifically
are becoming increasingly more attractive.



Alternative investments are attractive investments due to
their ability to improve a portfolio’s risk adjusted return.

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THANK YOU!

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Disclosure


Comerica’s
Wealth Management team consists of various divisions and affiliates of Comerica Bank
and also subsidiaries of Comerica Bank including World Asset Management, Inc.; Wilson, Kemp &
Associates, Inc.; Comerica Insurance Services, Inc. and its affiliated insurance agencies; and
Comerica Securities, Inc. Securities offered by Comerica Securities, Inc. are not insured by the
FDIC, are not deposits or other obligations of or guaranteed by Comerica Bank or any of its
affiliates, and are subject to investment risks, including possible loss of the principal invested.
Comerica Securities, Inc. is a broker/dealer, federally Registered Investment Advisor, member
FINRA/SIPC and subsidiary of Comerica Bank.


This material is for use in one
-
on
-
one presentations with eligible investors only.

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