Are you unsure as to where to invest in 2014? You may wish to consider bonds. Although bond prices slipped in 2013, after a long period in which they rallied, some investors are hopeful that this trend is set to reverse in 2014. They argue that the Federal Reserve will continue to make large bond purchases every month, driving down interest rates and driving up the value of bonds.
When choosing companies to invest in 2014, you should carry out market research. Some traders are planning to focus on the economic growth expected in the coming year, with particular regards to equities. If the global growth rate either accelerates or remains modest then equities should do well. The IMF has predicted a growth rate of 3.6% for the economy in 2014. Such information is essential when we decide where to invest in 2014.
It is also sensible to speak to a broker about where you should invest in 2014, as they will be able to provide you with valuable insight. They may suggest you consider the investment theme of ‘Reversion to the Mean’ in the coming year. Asset prices, it is believed by some, will ultimately always revert to their averages. If this is true, then both those treasury inflated protection securities and those commodities which did not perform well in 2013 may well return to their previous average prices. Apart from taking these steps, you should also, to some extent at least, rely on your gut feeling as to where you should invest in 2014.