This is the time you get 2014 predictions. For the most part this is a completely worthless endeavor and a waste of your time unless you are a contrarian. For me, it’s interesting reading and I am a contrarian. We will publish a few of them and if we seen anything noteworthy, I’ll highlight it.
Overview2014 should bring with it slightly better economic growth and a slow increase in real interest rates.We believe investors should continue to overweight equities in their portfolios.Additionally, we suggest avoiding Treasuries and TIPS and focusing on fixed income credit sectors.2013: A Year of “Missed Risks”This year began with many focusing on what could go wrong. We had just gone through the “fiscal cliff” debacle, investors were worried about the European debt crisis, and the outlook for U.S. and global economic growth looked uncertain.Instead, however, 2013 proved to be a year when most major risks were avoided and the table was set for a strong investing year. The economic recovery continued if unevenly, inflation remained low and, notwithstanding a mid-year jolt, interest rates rose but not disruptively.In this environment, equity markets enjoyed an impressive year, with U.S. stocks up more than 25% and the major indexes hitting new records along the way. International markets also notched solid results, with the exception of emerging markets, which struggled with uneven growth and structural imbalances. Fixed income markets were choppy in 2013, with a long-awaited rise in interest rates finally occurring. As Treasury yields advanced nearly a full percentage point, bonds experienced a rare negative total return for the year prices move in the opposite direction of yields.
via Weekly US Commentary: Market Insight: Financial Professionals: BlackRock.