Rates, Recovery & Reform, three themes that will be central to equity markets in 2014 according to the research team at Ord Minnett

Rates, Recovery & Reform, three themes that will be central to equity markets in 2014 according to the research team at Ord Minnett. The disruption caused by the Fed tapering will be more than offset by a low interest rate world and reduced volatility as central banks boost growth prospects. The Broker notes that reform programs launched in Japan and China will also be important for Australia, given their role as our largest trade partner. On the earnings front, expectations are that broad economic growth is too weak for a profit boom and earnings will be slow growing and relatively predictable. The Broker says when you add low interest rates to this scenario you are likely to see continued expansion in valuation multiples. From a strategy perspective Ords are looking to focus on companies with non AUD earnings, including Brambles, CSL, Lend Lease, Resmed, Sonic & Westfield Group.