The boss of a leading Bermuda investment firm believes the two "economic worlds" are forming in the aftermath of the global recession.

Robert Pires, chief executive officer of Bermuda Investment Advisory Services (BIAS), told investors at the firm's Quarterly Market Briefing that the challenges were different for "old world" and "growing" economies.

"Old world" economies like some EU countries, the United Kingdom, and Japan, are being held back by mounting public debt, and ageing populations, Mr. Pires said.

He added that these regions are expected to grow much slower than the "growing" economies of other regions such as China (and Emerging Asia), Australia, Canada, and Brazil.

Currently the most prominent "old world" crisis is happening in Greece, where the citizens are rioting over measures being proposed to combat the country's soaring deficit. Meanwhile, many citizens have not been paying taxes and 30 percent of the population works for a bloated public sector.

BIAS senior investment strategist Bryan Dooley said growing economies are faring much better, as their banking systems have not been as stressed by poor loans. In fact, their biggest concern is controlling the risk of too much growth and rising inflation. The younger populations of these areas have generally emerged as a rising consumer class now affecting the balance of trade globally.

BIAS sees the US as a pivotal factor in the global economic equation caught in between these two contrasting worlds. The US was hit hard by the recession and there is still great reason for concern, particularly with respect to rising debt levels. Nevertheless, "economic rainbows" are forming as the US housing market stabilises and as employment levels show early signs of improvement.

Associate portfolio manager Kent Turner said that in its equities portfolio, BIAS uses a balanced portfolio approach which includes both "tortoises" — corporate stalwarts that provide steady returns — and "hares" which consist of reasonably priced growth stocks.

Some of BIAS' recent selections in the tortoise category include Royal Dutch Shell Plc, Time Warner Inc., CVS Caremark Corp., and Banco Santander SA.

The "hare" investments — seen as highly innovative companies that are growing faster than the overall economy — include Research in Motion Ltd. (maker of the Blackberry), Intel Corp., Best Buy Co., and Google Inc.

For more information, visit www.bias.bm and www.biasglobalportfolios.com