2012 Economic Outlook Featured at January Meeting
2012 U.S. Banking Outlook Presented at Mini-Session
The Chapter’s January meeting was recently held on January 18, 2012 at the Stony Hill Inn in Hackensack.

Craig Dismuke, Chief Economic Strategist at the investment advisory firm of Vining Sparks, was the featured dinner speaker. Craig presented a very informative 2012 Economic Outlook. He was also a featured speaker at the East Coast Regional Conference held this past September in Newport, Rhode Island.

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Craig Dismuke presentation
Featured dinner speaker Craig Dismuke, Chief Economic Strategist at Vining Sparks, presented a 2012 Economic Outlook.

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Fred Viaud photo
Fred Viaud gave the invocation at the dinner meeting as Chapter President Steve Fusco yields the podium.

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Justin Hoogendorn presentation
Justin Hoogendoorn, Managing Director at BMO Capital Markets presented a 2012 U.S. Banking Outlook during the afternoon Mini-Session.
The afternoon mini-session featured a 2012 U.S. Banking Outlook presented by Justin Hoogendoorn CFA, Managing Director at BMO Capital Markets.

Members and guests experienced two informative sessions highlighting the prospective economic and banking climate for the upcoming year. They also enjoyed a full course dinner as well as the camaraderie of the cocktail hour following the afternoon mini-session.

Craig Dismuke began the dinner presentation by summarizing the economic factors experienced in 2011 and noted that we can expect more of the same for 2012. The primary factors included the “drama” of the European economy, weak domestic growth and the intervention of the central bank. Craig noted how the banking sector struggled throughout 2011, global stock prices fell while domestic stock prices were stable. He noted that although housing starts have flattened, the backlog of distressed properties and falling home prices continue to hurt consumer sentiment.

Craig summarized the key economic developments for 2012:

  • Private investment will continue to be weaker than needed;
  • Consumption will slow in the first half of 2012;
  • Europe will continue to seek “half step” solutions;
  • U.S. elections will have a big impact on domestic economic direction.

Justin Hoogendoorn presented strategies to mitigate risk and stabilize earnings for depository institutions at the afternoon mini-session. He began by reviewing recent economic factors. He noted that employment conditions are beginning to show improvement, but jobs recovery is still lackluster; the downside for housing remains and the European debt crisis continues.

Justin explained that building excess liquidity for domestic banks leads to shrinking net interest margins. He noted the importance of developing investment strategies in the context of the entire balance sheet that can be repositioned over time to improve rates of return based on changing economic factors. Craig discussed a strategy focusing on the intermediate segment by adding bonds in the mid-range of the curve.

Justin summarized the following key economic conclusions:
  • Sovereign and household debt problems weigh on the markets;
  • Housing will continue to act as a drag on economic growth;
  • Labor market trends underscore structural problems confronting the US economy;
  • European debt crisis weighing on global markets;
  • Rates are low and will likely remain low for at least the next couple of years.

Topics and Speakers

2012 Economic Outlook

Craig Dismuke photo
Craig Dismuke
Chief Economic Strategist
Vining Sparks, Inc.
(800) 829-0321


Slide Presentation

2012 U.S. Banking Outlook

Justin Hoogendoom photo
Justin Hoogendoorn
Managing Director
BMO Capital Markets
(312) 845-4016


Slide Presentation

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FMS January 2012 Mini-Session photo
Chapter Members closely follow the afternoon Mini-Session presentation.