Politicians and policy will likely remain the biggest threats to U.S. economic recovery. U.S. monetary policy and political pressures worldwide could also impact the 2014 performance of various asset classes.
So warns Russell Investments in its fourth-quarter Strategists’ Outlook & Barometer survey. The report examines economic and market indicators from Russell’s global team of investment strategists, whose insights help to guide the firm’s multi-asset portfolios and services.
The research predicts modest gains for equity markets and higher bond yields in 2014 as the world’s major economies continue to grow.
“As investment strategists, we are normally presented with a difficult task of forecasting capital markets, but this task seems far easier than the recent near impossible one of forecasting politicians,” says Doug Gordon, senior investment strategist for North America at Russell. “Looking at the path ahead we believe additional volatility may continue, but this could be leveraged as an opportunity to increase tactical equity positions, such as within multi-asset portfolios.”