It has been an exciting and sometimes scary week thus far as investors didn’t know if the current market volatility was going to be something bigger or this was just going to be some sort of a correction that needs to be endured, said Brian Jacobsen, chief portfolio strategist at the Wells Fargo Advantage Funds. Thankfully the fourth-quarter US GDP …
One Man’s Opinion: Will US Equities Outperform Bonds In 2014?
The latest manufacturing data out of China, which showed a contraction, was enough to take global equity markets down Friday, said Mark Eibel, Director of Client Investment Strategies at Russell Investments. The US earnings season has been pretty mixed and even a strong manufacturing reading out of Europe was not good enough to change the downbeat tone for the day, …
One Man’s Opinion: Will Correlation Between Stocks And Bonds Rise In 2014?
The US economic recovery is gaining speed, but there are a few underpinnings that are still fragile, said Russ Koesterich, chief investment strategist at BlackRock Inc. The good news is there is much less fiscal drag this year and household balance-sheets are in a better shape, which in turn will help the economy accelerate modestly in 2014. The missing piece, …
One Man’s Opinion: Are Industrials Likely To Outperform If GDP Grows At Three Percent Or More?
The growth environment is getting better, and it may surprise in terms of its strength. As that happens, the Fed is going to get a little bit more concerned about their policy, said David Joy, Chief Market Strategist at Ameriprise Financial. The market is going to anticipate that inflation is going to rise a little bit. Clearly the Fed is …
One Man’s Opionion: Why Are European Banks Unwilling To Lend To Corporations?
A broadly positive outlook for 2014 doesn’t necessarily mean investors exit the fixed-income market as Friday’s data (a sharp drop in Spanish unemployment claims in December) showed Spanish government bonds could do relatively well compared to the core countries, said Georg Grodzki, Head of Credit Research at UK’s Legal & General Investment Management. The peripheral government bonds should offer some …
One Man’s Opinion: Would An Interest Rate Hike By The Fed In 2014 Be Calamitous?
There is too much optimism as markets go into 2014, and it’s really easy to get caught up in all the good news at this time of the year, said James Bevan, Chief Investment Officer at CCLA Investment Management. Realistically, the fundamentals are very strong, the central banks very supportive and the companies are saying all the right things. The …