'Global stock markets likely to post 10 percent gains in 2013, despite volatility'

John Praveen, chief investment strategist for Prudential International Investments Advisers, expects continued stock market gains in 2013, following a year marked with a big dichotomy between weak economies and strong markets.

"We expect global equity markets to post further gains in 2013 due to additional rate cuts, expansion of liquidity measures and continued stabilization in the eurozone," said Praveen at Prudential's 2013 Global Economic and Retirement Market Outlook held recently in New York City. "In addition, stocks should draw support from improving GDP growth, earnings recovery and reasonable valuations."

However, Praveen cautioned, there are risks to stock markets, including eurozone crisis aftershocks and another contentious debt ceiling fight in Washington, D.C. "These risks are likely to keep markets volatile," he said. However, he expects central bank liquidity and improving risk appetite will likely enable global stock markets to post around 10 percent gains in 2013, with several markets, including the U.S., likely to reach new all-time highs. Praveen's expectation is for the S&P 500 index to reach 1600 by the end of 2013.

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