Apparently, millions of people around the globe are looking for the ways and means of gaining some extra profits and saving their money from inflation. For some people, 2013 was a terrible investment year while others showed consistent results throughout the year.
Not it is time to focus on the moneymaking opportunities offered to us in 2014. Masterforex-V Academy will help us with that…
Masterforex-V Academy: Decent Investment Opportunities 2014
Russian stock market. Let's start from RTS. The ruling tendency was negative in 2013. The flight of capital seen in the market last year amid some economic issues in Russia and economic improvement in developed economies led to such a poor result. Can we expect any changes this year?
Well, the forecast is rather reserved – some 1,5% in 2014 for Russia. At the same time, some experts say the Russian economy is already stagnating. Indeed, there are few reasons to expect a rally in the Russian stock market, Still some sectors may strengthen.
Therefore, Masterforex-V Academy recommends reducing exposure in the Russian market or to leave it at all.
US stock market. In 2013, the US stock market showed a sizable rally, thereby attracting more investors form around the globe. The Fed's endless qunatitative easing, along with some economic improvements resulted in a stronger US market.
At the same time, the US economic forecast for 2014 is 3% versus last year's 2.2-2.3%. Even tough tapered, the Fed's QE will continue stimulating the stock market until the rate of inflation is around 2% (the latest figures indicate 1.2%). However, there are some restraining factors including higher mortgage rates (which will hinder the domestic housing market) along with the fact that the US stock market is currently overbought.
The bottom line drawn by Masterforex-V Academy is that there are no reasons to expect another strong rally this year. Still, there are no reasons for a deep correction. The bias is still bullish. Therefore, any sizable retracement can be viewed as a buying opportunity.
European stock market. The EU stock market was as bullish and strong as its American counterpart in 2013. Despite doomsday forecasts, the European economy managed to recover and come out of a prolonged recession. Thanks to efficient actions made by the local authorities along with the consensus found in many issues, Europe was finally able to show some positive tendencies.
As for the economic predictions made for Europe, the EU's GDP is expected to grow some 1% vs last year's -0,4%. Low inflation will back easy monetary policies.
The bottom line is that European stock indices and some stocks may become good investment opportunities in 2014.
Commodities. As for commodities and related ETFs, they are unlikely to have a positive tendency in 2014. Therefore commodities and commodity-related ETFs are not recommended to include in investment portfolios. Well, the situation may change throughout the year, however there are no reasons to see some bullish tendencies in these markets at this point.
Gold and other precious metals. These commodities have been considered an inseparable part of any investment portfolio for decades. Still, the situation has changed. There decade-long gold rally seems to be over. Some experts mention manipulation as the key reason for the current situation in the market. Other experts name low inflation in the developed economies like the UK, the EU, Canada and the USA. This is natural, since gold is a major safe-haven asset and an instrument to secure money against inflation. When inflation is low, nobody wants gold since there is nothing to secure against.
The bottom line is to abstain from holding gold or to reduce exposure to the minimum hen holding gold positions.
Bonds. Monetary easing makes bonds attractive for investors. The reason is that the bonds increase in value. At the same time, investors can count on the yield promised by the bond issuer on expiration. Still, last year's tendency is unlikely to be seen in 2014.
Even though, there are no reasons to expect major rallies in bond markets, Masterforex-V Academy recommends purchasing corporate bonds with high yields when the price has shown some retracement. The overall recommended duration of such portfolios is around 1-2 years.
Currencies. Apparently, currencies have been some of the most popular assets with traders and investors worldwide. Still the currency-based portfolio needs diversification as well. Masterforex-V Academy recommends allocating the biggest share of this portfolio for the US Dollar. The Fed's decision to taper QE3 and stronger economic figures will support the currency in the near future. The rest of the portfolio is recommended to be allocated for the Euro and the Swiss Franc. For more details and recommendations, please visit Masterforex-V Academy's forum for traders and investors.
