Investment Outlook 2014: Optimism Resurfaces in Spite of Challenges

The year 2013 will be remembered for two significant events: one of the best US stock market returns in 10 years and the worst US fixed income market return in 10 years. Despite fears of a fiscal cliff, government shutdown and a war in Syria, US stocks turned in a year of stellar returns. With a spi...

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Bibliographic Details
Published inThe Planner p. 1D
Main Author Stevens, Sue
Format Trade Publication Article
LanguageEnglish
Published New York American Institute of Certified Public Accountants 01.01.2014
Subjects
Capital gains
Economic conditions
Economic growth
Energy consumption
Fixed incomes
GDP
Government bonds
Gross Domestic Product
Income taxes
Inflation
Interest rates
Investments
Rates of return
Recessions
Securities markets
Stock exchanges
Tax planning
Tax regulations
Technology stocks
Volatility
United States > US
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Summary:The year 2013 will be remembered for two significant events: one of the best US stock market returns in 10 years and the worst US fixed income market return in 10 years. Despite fears of a fiscal cliff, government shutdown and a war in Syria, US stocks turned in a year of stellar returns. With a spike in interest rates in June, when Federal Reserve Chairman Ben Bernanke hinted at a tapering of federal bond buying, bonds suffered losses, with long government bonds and treasury inflation protected bonds incurring the largest losses. Looking ahead to 2014, expectations include a continued healing process for economic growth in developed countries and more volatility in emerging economies. The US appears to be in the middle of an economic expansion in which gross domestic product growth rates are finally starting to emerge from sub-par 2% rates for the past four years to an estimated 2.5% to 3.5% rate for the next few years.
ISSN:0895-3570