Client Voices

ING's Doug Cote in Investment News: "Consumers Are Game Changers in 2011"

ING Investment Management's senior market strategist Doug Cote authored an article in the April 3, 2011 Investment News making the case for the growing consumer class driving market growth in 2011.

"A year's worth of consumer-spending growth in the United States was punctuated by a populist uprising in November's midterm elections that resulted in a redirection of fiscal policy. Hugely populous 'emerged' markets in Brazil, India and China have developed a consumer class, as have newly emerging markets in South Africa, Turkey and Vietnam," wrote Cote. "As an unexpected bonus, certain parts of the Middle East are beginning to move toward democratic systems of government more likely to allow them to participate in and contribute to world prosperity."

Despite nearly 10% unemployment in the U.S., 2010 retail sales delivered 12 months of year-over-year increases and reached their highest monthly level ever in December, at $380.9 billion. Both personal income and personal consumption reached all-time highs by year-end. According to Cote, consumer discretionaries have been some of the highest performing stocks in 2010 and a number of companies in the sector have been beating estimates.

He also noted that consumer sentiment appears to be just hitting its stride. "When it comes to the markets, the consumer is a game changer, and the game has only just begun," he said.

Click here to read the full article.

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