7 investment tips to consider in 2014
- For U.S. equities, the IA&M team does not see the equity market in a bubble or overvalued as long as revenues and earnings continue to grow, with S&P earnings estimated to grow at 6 to 8 percent in 2014.
- In emerging markets, it is a bit too soon to start overweighting tactical positions due to cheapness alone. Timing will be paramount as momentum could continue to carry these markets downward, even as global growth accelerates.
- High quality municipal bonds will perform relatively well as valuations remain attractive when compared to taxable securities, improving credit quality, and supply that remains below historical averages.
- Foreign government bonds will likely outperform Treasuries as supply shifts in the market due to tapering, creating opportunities to underweight Treasuries.
- In the energy sector, recent infrastructure investments should perform well as they are exploited, providing energy-intensive industries with an advantage.
- Housing may face some headwinds from predicted pick-up in rates as well as from tighter government regulations on lending that took effect in January 2014.
- Alternative strategies will benefit from expected increases in interest rate volatility due to Fed tapering.
To read more about the Investment Advisory & Management report, which includes an outlook for U.S. and global growth and projections of GDP for 2014, go to: http://GoWe.st/1g3b5H7.
The information set forth in this material is for informational purposes only and should not be construed as legal, tax, or investment advice. The information contained in this newsletter is not intended as an offer to purchase or sell any financial product, nor does the information constitute an expression of the Bank’s view as to whether a particular security or financial instrument is appropriate for you and meets your financial objectives. Past performance is not indicative of future results. Investors should seek the advice of a financial professional regarding the appropriateness of any investment or investment strategy mentioned in this material. All investments involve risk.