MONTHLY OUTLOOKOCBC PREMIER BANKING

APRIL 2013

WHY YOU SHOULD STAY BULLISH ON EQUITIESRECOVERY ON TRACK

GLOBAL OuTLOOk

U.S. Recovery Gathers SteamThe United States was the first major global player to descend into recession in 2007-08 as the financial crisis struck. Today, there is more evidence than ever that the U.S. is the furthest advanced in eliminating economic imbalances and returning to solid growth. China’s economic recovery is also underway, but its new leadership appears to favour a gradual rebound and its outlook is more uncertain.

The recovery in 2013 is different in nature to the rebound in 2009 and 2010, which was much stronger because of the speed at which economic activity had fallen beforehand.

Although China’s growth rate in 2013 might be four times that of the U.S., the upsurge in American economic activity is likely to have a greater impact on Wall Street.

U.S. companies and households have made the most progress in cutting back their level of debt and are now best placed to resume spending on investment and consumption.

While the Cyprus bailout raised concern across Europe about the safety of bank deposits, ultimately it was a one-off situation that required a unique solution.

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VIEWS OF THE OCBC WEALTH PANEL

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From left to right:Back row: Simon Flood, Koh Huat Soon and Vasu MenonFront row: Selena Ling, Lin Wyson and Ong Shi Jie

The way stock markets brushed aside the Cyprus crisis to resume their climb shows that financial confidence is taking hold worldwide. With the U.S. on an increasingly clear recovery path and Japan acting aggressively to get its economy moving, investors have good reason to remain bullish about prospects for sustained economic growth that can drive strong investment returns.

- Lim Wyson, Head of Global Wealth Management, OCBC Bank

With over 200 years of collective investment experience, the OCBC Wealth Panel is well recognised in the industry and sought after by the media for its invaluable insights. Now those insights are available to you in our new Monthly Outlook, featuring the Panel’s concise markets analyses and easy-to-understand recommendations to help you make the best decisions for your financial future. For more information, please visit www.ocbc.com.my/personal-banking/premier

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