What are the key issues in the US that are most likely to affect equities prices in 2014
What are the key issues in the US that are most likely to affect equities prices in 2014? First and foremost, the US will hit its debt limit in early February (once again) and it's likely to spark another Congressional debate. While Congress appears to be more inclined to negotiate in 2014, the debt ceiling has proven to be a touchy subject in recent times. Next, but certainly no less important, will be how the Fed chooses to reduce monetary stimulus over time and how the central bank's language changes as the economy (likely) improves. Finally, how will investors respond after a huge year for equities? Can we expect 30% gains again in the benchmark indices? Will it be a stock picker's market? Only time will tell - but how the market reacts to the coming earnings season should give us some clues.
I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...
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