Ready for the great rotation of 2014?
As the economy continues to heat up, look for investors to shift their focus in the new year.
First, the market has moved even higher since last August, with the Russell 2000 up another 9% and the S&P 500 Index rising another 8%. If investors are looking to lock in profits in 2014, then larger companies, especially those with robust buyback and dividend policies, are likely to hold their own better than small caps.
These same folks disregarded the collective actions of the Global FEDS and why this Bull Market has actually taken place. They will be just as naive when it all comes unglued. Just as the Crooks lied and stated nobody saw the Great Recession coming. They lied. Just as certain Apple Longs disregarded the price action in Apple. Sept2012 close of $700, those that bought on that day, still are underwater on their investment. In spite of the FACT of Record profits and Cash Hoards. Gravity's a Bitc..
I usually pull for the little guy, until he or she get's too cocky and that appears to be the case now. When folks began to disregard why and how things are done, it's only fitting they reap the negative downside if they ignore all warnings and never take profits. You can be certain of one thing, some folks will always hold to infinity and ride their winners into losers.
The top 1%, it matters very little financially to them if the Market rise or fall, that's why they are in the top 1%. A recession is a Garage Sale for them. They are like the House at the Casino, they always have the House Edge or Vig in their Favor. They have colluded with the Global FEDS to give the current illusion that everyone has the House Edge or Vig. When this House of Cards tumbles like all things built on Fiction, the party is literally over. The problem becomes what do the FEDS have left to put it all back together again.
Some posters will attempt to dismiss this by calling it negativity. Fact is it's exactly what has been going on here and Globally for decades. The problem that folks should be concerned with is, what price will we eventually pay for short term gains. A few years is just that, short term. WE are not Generational thinkers and therefore protecting our future. That will be our undoing not only for us, but for Generations that follow.
Davey321Zero must not have much to do, these days. School off for winter break?
The big focus in 2014 is Japan economy this is a big impact for the united states and Asian countries also china. I am seeing Japan and china economy will drop if a conflict breaks out.
A Job Seeker in Europe, "You don’t even dare speak about pay anymore,” Lara says. “You’re so afraid they’ll just slam the door."
So in spite of the Record Profits and Cash Hoards for Corporations, they refuse to hire properly and or pay a living WAGE. Yet the Stock Markets have been on a tear. Most folks have identified the reason, massive Stock buybacks thanks to low rates via Crack-dollars from the FEDS. What we don't know going into 2014, how much Dry Power the biggest Mover of stocks has left, Corporate Stock Buybacks on a Grand Scale.
David is making a huge assumption that the GDP print will carry over to 2014 and that the actual economy is getting stronger. If anything, we are due for another pullback across the board. That hasn't yet effected stock prices thanks to Crack-dollars from the FEDS and corporate stock buybacks. Just as investors have quickly forgotten the epic Market crashes of the past, they also tend to get just as fearful if the Markets again have a massive correction.
They also mentioned a major divergence between commodity prices and stock prices that tend to equalize over time. They say the Trend is your Friend until it ends. We shall see.
It's been a Great Year....Nice upside on FMVs.
If you weren't playing, you were dying...
We hit records and over 16.5 on DOW..
Other Indices at new Records....
Think there are several opportunities coming in 2014..
Think better Recovery Worldwide..
Energy plays, Heavy Equipment, Medical/Health, Tobacco as always, Big Internationals or Multi's.
Hopefully mining and metals, Rails, Home Improvement, Housing and some Financials.
ps...Crazy, why is V-L stalking you, his meds aren't working? arf, arf, arf.
Everyone has different methodologies to investing. Some folks know how to hedge properly while others only know how to Hold to Infinity. There are also folks fully invested but are here just to make political statements.
At the end of the Day, regardless of what the Markets do or don't do in 2014, a wise investor is aware of all the possible outcomes that might play out. A wise investor isn't greedy because we know that eventually, Pigs get Slaughtered.
Some good points here from Tog, Ntu, Roadhouse, Dave and others. Most every year we mention this could be a interesting year and this year is certainly no different. Yes the January trend has been consistent as has the January effect that I mentioned. This year there is not a lot of serious tax loss selling except in metal and coal stocks so they could have a bounce for a month or two if gold and coal prices hold or increase.
On the January trend, if the first 5 days were up and you stayed in January through March and out this rest of the year you would have handily beat the market over the long term and with 9 months less risk. Even more so when your brokerage account was paying 5% or so.
Congrats Roadhouse on a conservative investment theme that served you well and no your not wrong. Investment styles is what ever is in your wheel house is right. When we get out of our comfort zone to fast is when fast is when we can get in trouble.
NTU, you and I will keep an eye on the new world order for the boys and girls. May or may not be anything largely effecting our investments at our age but if they win over on the idea of sharing our retirement savings with others not only but around the world like they want it will be huge for the next generation. Stay profitable.
Now let's see ? We had the market collapse in housing in 2006 and historically within 7 years of the housing collapse you have the stock market collapse. It looks like were over due for a terrible market adjustment. But, who cares? You can make a lot of money "Selling Short" if you know what you are doing.
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Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
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