Capital Markets Outlook Winter 1Q14
A strong 2013… What’s Next?
January 20, 2013
We expect moderate global economic growth to continue in 2014, and inflation is likely to remain low globally. Given the general bias toward accommodative monetary policy, we anticipate ample liquidity to remain in the global financial system. Investors should position their fixed-income portfolios for gradually rising rates, including a proper balance between credit and yield-curve risk. Stocks still seem reasonably priced, and we think being active offers opportunities to tap their potential and protect from potential downturns.