{"id":1004089435,"date":"2014-01-08T09:46:12","date_gmt":"2014-01-08T17:46:12","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004089435"},"modified":"2022-12-08T23:05:52","modified_gmt":"2022-12-09T07:05:52","slug":"special-report-prudential-sees-economy-heating-up-in-2014","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/special-report-prudential-sees-economy-heating-up-in-2014\/","title":{"rendered":"SPECIAL REPORT: Prudential Sees Economy Heating Up in 2014"},"content":{"rendered":"

By Keat Foong, Finance Editor<\/em><\/p>\n

Prudential expects the economic recovery in U.S. to gain momentum in 2014.<\/p>\n

Edward Keon, managing director and portfolio manager, Quantitative Management Associates, said that the U.S. economy will experience “some” acceleration this year. He forecasted that GDP will be 4.1 percent for the fourth quarter of 2013, and possibly even reach 5 percent in the second half of the year. 2014 will witness sustainable GDP growth increasing to more than 3 percent, he said.<\/p>\n

Keon and other officials from Prudential Financial Inc. were speaking at the company\u2019s 2014 Global Economic and Retirement Outlook held in New York.<\/p>\n

\u201cThe \u201cnew normal\u201d will resemble the \u201cold normal,\u201d said Keon, who in June had predicted the acceleration in the economy in the last quarter of 2013. \u201c[W]e\u2019re now experiencing a robust economy that we used to think as normal.\u201d<\/p>\n

Although domestic government cutbacks in spending had been a drag on the economy, \u201ctremendous\u201d pent-up consumer demand in industries, \u201cslightly\u201d improved credit conditions, and a \u201csignificant boost\u201d in the energy sector all bode well for the economy, said Keon.<\/p>\n

Michael Lillard, chief investment officer for Prudential Fixed Income, said there are no signs of inflation, which remains relatively low in part because of the slack that exists in the labor market.<\/p>\n

Lillard predicted that interest rates will remain low through 2015, because of the low inflation and relatively-high unemployment rate.<\/p>\n

\u201cWith the 10-year treasury rate skirting 3 percent, we think the market has already priced in the Fed\u2019s taper and that rates should hover around current levels unless economic growth surprises to the upside, or the Fed moves more aggressively than expected to end it bond purchases, \u201c said Lillard. He added rates could trend even lower \u201cif the economic backdrop disappoints and inflation remains below the Fed\u2019s target.\u201d<\/p>\n

Lillard said that he expected spreads on triple-A rated CMBS to continue to narrow. These commercial property-backed bond securities are currently very attractive to investors on a risk-adjusted basis compared with investment-grade corporate bonds.<\/p>\n

Sharp increases in commercial property valuations, especially in the multi-family sector, have led to questions of possible real estate \u201cbubbles.\u201d In a question-and-answer period, David Durning, president & CEO of Prudential Mortgage Capital Co., indicated that property prices may not be overvalued overall as they remain below replacement costs.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Prudential expects the economic recovery in U.S. to gain momentum in 2014.<\/p>\n","protected":false},"author":1138,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,21825,37753,21783,21742],"tags":[],"class_list":["post-1004089435","post","type-post","status-publish","format-standard","hentry","category-development","category-finance","category-research-center-finance","category-investment","category-latest"],"acf":[],"yoast_head":"\nSPECIAL REPORT: Prudential Sees Economy Heating Up in 2014 - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/special-report-prudential-sees-economy-heating-up-in-2014\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SPECIAL REPORT: Prudential Sees Economy Heating Up in 2014\" \/>\n<meta property=\"og:description\" content=\"Prudential expects the economic recovery in U.S. to gain momentum in 2014.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/special-report-prudential-sees-economy-heating-up-in-2014\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2014-01-08T17:46:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T07:05:52+00:00\" \/>\n<meta name=\"author\" content=\"Keat Foong\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-prudential-sees-economy-heating-up-in-2014\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-prudential-sees-economy-heating-up-in-2014\\\/\"},\"author\":{\"name\":\"Keat Foong\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/d0cb4c73ef30a522b83905f27b42e634\"},\"headline\":\"SPECIAL REPORT: Prudential Sees Economy Heating Up in 2014\",\"datePublished\":\"2014-01-08T17:46:12+00:00\",\"dateModified\":\"2022-12-09T07:05:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-prudential-sees-economy-heating-up-in-2014\\\/\"},\"wordCount\":388,\"commentCount\":0,\"articleSection\":[\"Development\",\"Finance\",\"Finance (Research Center)\",\"Investment\",\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-prudential-sees-economy-heating-up-in-2014\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-prudential-sees-economy-heating-up-in-2014\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/special-report-prudential-sees-economy-heating-up-in-2014\\\/\",\"name\":\"SPECIAL REPORT: Prudential Sees Economy Heating Up in 2014 - 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