- The U.S. economy expanded at a brisk rate of 5.6% in the 4Q09, the second consecutive quarter of growth. Factoring out government fiscal stimulus programs, artificially low interest rates, holiday spending and seasonal employment, the actual number would be less than one-half this.
- Expectations are for U.S. economic growth to slow throughout 2010 and 2011 as the impact of the temporary stimulus programs fade. The International Monetary Fund (IMF) projects growth of 2.7% this year followed by 2.4% in 2011.
- Emerging Market economies are expected to continue their fast-paced growth this year and in 2011 with IMF estimates of 6% and 6.3% respectively. They will continue to be the catalyst behind solid estimated global economic growth of 3.9% for this year and 4.3% in 2011.
- In a positive sign for Venture Capital funds the IPO market appears to be picking up steam with 112 IPOs from the beginning of the current bull market last March through the end of 1Q10. There were 157 IPOs in the first year of the 2003-2007 bull market.
- Both Moody’s and S&P credit rating agencies indicated that the U.S. Government’s uncontrolled spending and record debt level (now equal to one year’s economic output) have given them pause to re-think the country’s AAA credit rating.
- Investors in credit default swaps (CDS), those convenient little insurance policies designed to protect your bond investment against loss in the event the issuer defaults, have increased their insurance against the U.S. Treasury’s default by 60%.
