Macro, U.S.

2014 Outlook: No Encore Performance, But the Run's Not Over!

January 14th, 2014 | By Nick Sargen

As the New Year gets under way, consider the mixed emotions of investors today: Equity investors are jubilant, after the U.S. stock market returned more than 30% in 2013; however, their fixed income counterparts are frowning, as Treasuries and investment- grade corporate bonds posted small losses (see Figure 1). Globally, international equity markets generated stellar results with the EAFE Index returning nearly 23%; however, emerging markets fared poorly with the MSCI Index negative for the year. All of this occurred against a backdrop of continued moderate growth of the U.S. and global economy, a lessening of tensions in the euro-zone and tremendous uncertainty about the conduct of U.S. fiscal and monetary policies.

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