Markets
Where Will The Equity Markets End The Year?
Friday, March 7, 2014
Source: Cretopedia
After the equity markets experienced huge gains in 2013, I believe 2014 is going to bring more growth. The gains will definitely not be over 20 percent as they were last year, however as a whole they will continue to increase, while bond prices will continue to gradually fall. "Stocks could go up another 10% to 15% in 2014. Investors may finally begin to really abandon bonds," Jeffrey Kleintop, chief market strategist with LPL Financial, stated.
A common mistake that people make when it comes to the rises and falls of the stock market is that after a large increase in the market there must be a decline. Sometimes this is true, but the stocks at the end of 2013 do not look nearly as unreasonable exuberant as they did in 1999, when the collapse of the stock bubble started. Scott Wallace, founder and CIO of Shorepath Capital Management stated that at the end of the day, stocks follow earnings. Earnings are going to be pretty good; investors should not make it more complicated than it is[1].
Overall, the US economy does not seem to be at risk of another recession anytime soon. Since GDP will increase at an above 3 percent clip in 2014 as many experts believe, growth will not be enormous, but it will an improvement. After the issue in Ukraine and Russia is resolved, and if Ukraine joins the European Union, this would only help the equity markets. This is because European markets have a pretty large impact on S & P 500 and Dow Jones. Overall, 2014 will end the year with growth in equity markets, but not as significant as the growth we experienced in 2013.
[1] LaMonica, Paul. "5 Reasons Why Stocks Will Go up in 2014." CNN Money. Cable News Network, 19 Dec. 2013. Web.
Where Will The Equity Markets End The Year?
Friday, March 7, 2014
|
| Source: Cretopedia |
After the equity markets experienced huge gains in 2013, I believe 2014 is going to bring more growth. The gains will definitely not be over 20 percent as they were last year, however as a whole they will continue to increase, while bond prices will continue to gradually fall. "Stocks could go up another 10% to 15% in 2014. Investors may finally begin to really abandon bonds," Jeffrey Kleintop, chief market strategist with LPL Financial, stated.
A common mistake that people make when it comes to the rises and falls of the stock market is that after a large increase in the market there must be a decline. Sometimes this is true, but the stocks at the end of 2013 do not look nearly as unreasonable exuberant as they did in 1999, when the collapse of the stock bubble started. Scott Wallace, founder and CIO of Shorepath Capital Management stated that at the end of the day, stocks follow earnings. Earnings are going to be pretty good; investors should not make it more complicated than it is[1].
Overall, the US economy does not seem to be at risk of another recession anytime soon. Since GDP will increase at an above 3 percent clip in 2014 as many experts believe, growth will not be enormous, but it will an improvement. After the issue in Ukraine and Russia is resolved, and if Ukraine joins the European Union, this would only help the equity markets. This is because European markets have a pretty large impact on S & P 500 and Dow Jones. Overall, 2014 will end the year with growth in equity markets, but not as significant as the growth we experienced in 2013.
[1] LaMonica, Paul. "5 Reasons Why Stocks Will Go up in 2014." CNN Money. Cable News Network, 19 Dec. 2013. Web.
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