The winners and losers of an improving economy

US outlook for financial markets this year is mixed. They are optimistic on the economy and corporate profits but more cautious on interest rate strategies, as the US Federal Reserve navigates an uncharted course in pulling back on quantitative easing measures. Stocks in developed markets significan...

Full description

Saved in:
Bibliographic Details
Published inProfessional Adviser p. 31
Main Author Vaillancourt, Jason
Format Trade Publication Article
LanguageEnglish
Published London Incisive Media Limited 27.03.2014
Subjects
Capital expenditures
Credit risk
Economic development
Economic growth
Emerging markets
Federal Reserve monetary policy
Interest rates
Monetary policy
Profits
Securities markets
Stock exchanges
Volatility
United States > US
Online AccessGet full text

Cover

More Information
Summary:US outlook for financial markets this year is mixed. They are optimistic on the economy and corporate profits but more cautious on interest rate strategies, as the US Federal Reserve navigates an uncharted course in pulling back on quantitative easing measures. Stocks in developed markets significantly outperformed government and other rate-sensitive bonds in 2013. Stocks should continue to be in favor over the year ahead, although gains of a similar magnitude are unlikely. In setting an equity strategy for 2014, it is important to recognize that most stocks are trading at a price/earnings ratio of about 15. Valuations are, essentially, the same across industry sectors. Given this lack of disparity valuation criteria matter less than the ability of companies to deliver growth.
ISSN:1743-3339