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Wilmington Trust Releases 2013-2019 Capital Markets Forecast



         Wilmington Trust Releases 2013-2019 Capital Markets Forecast

Report identifies 'dollars, debts, and demographics' as key economic forces

PR Newswire

WILMINGTON, Del., Jan. 15, 2013

WILMINGTON, Del., Jan. 15, 2013 /PRNewswire/ -- Wilmington Trust released its
annual seven-year Capital Markets Forecast, projecting continued recovery in
the U.S. with economic growth at 1.5-2 percent in 2013, and annualized
inflation averaging 2 percent through 2019. The report's theme, "dollars,
debts, and demographics," examines how central bank stimulus, global debt, and
aging populations will reshape the global economy and financial markets.

The forecast, crafted by the Investment Strategy Team at Wilmington Trust
Investment Advisors (WTIA), predicts modest returns on stocks over the
seven-year span of the outlook. The team is more optimistic about emerging
stock markets, value-oriented large-cap stocks in developed international
markets, and non-core bonds, such as sovereign debt of emerging economies and
speculative-grade corporate bonds.

"Investing is a long-term proposition," said Rex Macey, WTIA's chief
investment officer. "While a myriad of competing economic and political forces
will perpetuate a tepid recovery over the next few years, there are
opportunities for the diligent investor."

DOLLARS, DEBTS, AND DEMOGRAPHICS
The Capital Markets Forecast includes concerns about the ability of world
leaders to drain excess liquidity from the global financial system. While only
a 2-percent annualized inflation rate is predicted for the U.S. over the
seven-year outlook, the "tidal wave of stimulus" issued by central banks
continues to boost financial asset valuations, leading to below-average
expected returns.

Just as the world is awash in dollars, it is also steeped in debt. The total
debt of the United States, including households, for-profit and not-for-profit
entities, and all levels of governments, hit $53.1 trillion at the end of the
third quarter of 2012, an amount equal to 3.9 years' worth of all goods and
services produced domestically. In 1982, national debt amounted to just 49
weeks' worth of U.S. economic output.

The Investment Strategy Team also cites concern over the "graying" of key
populations of the global economy. As U.S. Baby Boomers enter retirement and
transition from accumulators of savings to consumers of savings. This
demographic shift will likely generate headwinds for the markets. In many
emerging markets the demographics are more favorable supporting investments in
those markets.  On the bright side in the U.S., the Echo Boomers will be
helping to support the housing market in a few years.

SIX U.S. ECONOMIC SCENARIOS
The forecast also examines six potential scenarios and their potential effect
on economic growth:

  o Slow growth with normalization
  o Slow growth with persistent economic repression
  o Global policy success
  o Prolonged European / Chinese under-performance
  o U.S. policy failure
  o De-globalization

"In spite of continuing threats to the economy, many economic resources remain
in surplus in the U.S. including manufacturing, housing, and labor," said
Macey. "Additionally, we see a light at the end of the tunnel. By the end of
our forecast horizon in 2019, the U.S. will be ten years removed from the end
of the Great Recession, and economic growth and the financial markets should
have normalized by that time."

For more detailed analysis and projections, including forecasts and biases for
asset classes, Wilmington Trust's 2013-2019 Capital Markets Forecast
commentary is available online at
www.wilmingtontrust.com/repositories/wtc_sitecontent/PDF/Capital_Markets_Forecast_2013_2019_commentary.pdf.

ABOUT WILMINGTON TRUST INVESTMENT ADVISORS
Wilmington Trust Investment Advisors provides clients with access to quality
investment advisory and asset management expertise including equity, fixed
income, and alternative strategies. WTIA had over $19.7 billion of assets
under management as of Sept. 30, 2012, and it also oversees the investment
processes of Wilmington Trust and M&T Bank, which had $40.8 billion of assets
under management as of Sept. 30, 2012.

ABOUT THE INVESTMENT STRATEGY TEAM
WTIA's Investment Strategy Team undertakes a multi-year forecast of financial
market performance annually. The IST analyzes valuations and global economic
scenarios to develop its forecast for longer-term market performance, as well
as shorter-term trends in securities prices. The IST aims to deliver
higher-than-benchmark total returns for investors based on varying appetites
for risk. The forecast underscores the importance of diversification among a
variety of asset classes.

ABOUT WILMINGTON TRUST
Wilmington Trust's Wealth Advisory offers a comprehensive array of personal
trust, financial planning, fiduciary, asset management, and family office
services that help high-net-worth individuals and families grow, preserve, and
transfer wealth. Wealth Advisory maintains offices throughout the United
States and focuses on serving families with whom it can build long-term
relationships, many of which span multiple generations.

Wilmington Trust's Institutional Client Services (ICS) offers institutional
trustee, agency, asset management, retirement plan, and administrative
services for clients worldwide who use capital markets financing structures,
as well as those who seek to establish or maintain nexus, or legal residency
for special purpose entities. ICS is distinguished from many competitors by
its status as a core business of Wilmington Trust, as well as the experience
and expertise of its global staff, and its multi-jurisdictional presence.

Wilmington Trust has offices throughout the United States and internationally
in London, Luxembourg, Frankfurt, Dublin, Amsterdam, Cayman Islands, and
Channel Islands. Wilmington Trust is an M&T company. For more information,
visit www.WilmingtonTrust.com.

Media Contact: Kent Wissinger, Communication Manager (302)651-8758

SOURCE Wilmington Trust

Website: http://www.WilmingtonTrust.com
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