7 Reasons For a Strong Stock Market in 2014

Two Seminars will be held on this topic as well...free to the public:

Tuesday, Feb. 25th in Dade City & Thursday, Feb. 27th in Land O' Lakes. Click here for more information.

Since March 2009, we’ve been reaping the benefits of a bull stock market. At this point, many investors are wondering if the growth can continue.

To answer that question, the power players at the biggest financial firms predict how the stock market will do in the coming year. For 2014, many factors are suggesting that stocks will once again end in the positive territory – with the group average at 5.46% predicted growth for the S&P 500 (Source: Business Insider).

But how do these individuals make these predictions? What information do they consider? There are numerous factors that are taken into consideration. Here are a few reasons that 2014 is looking to be a good year financially.

Interest Rates

Major central banks remain committed to very low interest rates, which keeps borrowing costs for corporations and households low by historical standards. Gradual Fed reductions in asset purchases are unlikely to push rates significantly higher in the near future.

U.S. Housing

U.S. home prices continue to rise but at a more sustainable pace as residential investment contributes to GDP growth. Affordability remains high despite higher prices and mortgage rates.

Global Economic Growth

At least modest economic growth has returned to each of the world’s major economic regions — U.S., China, Europe and Japan — but not at a pace likely to induce monetary tightening.

Credit

Business and household borrowing are modestly expanding from low levels in the U.S. Small business credit remains severely constrained in much of Europe while China looks to push the economy away from heavily leveraged investment projects toward domestic consumption, likely slowing near-term growth.

Inflation

Developed market inflation is at or below policy targets. The threat of rising prices and policy responses may constrain growth in important emerging markets (EM).

U.S. Politics

Another government shutdown appears unlikely, but uncertainty over tax spending, and healthcare policy inhibits business investment and employment. Very low approval ratings may push politicians toward compromises on specific issues, however.

Consumer

Unemployment remains high in the U.S. and much of Europe, restricting the rate of consumption growth. In China the pivot to a domestic consumer-led economy remains a long-term aspiration with no guarantee of realization.

Overwhelmed by all this information? Join the professionals at Independent Financial Services at one of two 2014 State of the Markets seminars, to hear what all this means first hand and to ask any questions you may have about the coming year. Seminars will be held in Dade City on February 25th and Land O’ Lakes on February 27th.

For more information or to register for a seminar, call (813) 908-2701 or visit www.independentfinancialservices.net

The professionals at Independent Financial Services provide a variety of financial services to its clients, including comprehensive financial planning, ongoing active money management and investment management. The team specializes in four key areas: women and investing, retirement planning, divorce planning and small business solutions.

Jeannie Holliday, CFA, CDFA and Jodi Perez, CFP founded Independent Financial Services in Tampa, Florida in 2007 after both having previously owned and operated their own firms separately. There is over 100 years of combined experience among its dedicated staff. Independent Financial Services is located at 20635 Amberfield Drive, Land O’ Lakes, FL 34638. They can be reached at (813) 908-2701.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.  Securities are not deposits, not insured by FDIC or any other government agency, not guaranteed by First National Bank of Pasco, and are subject to risks, including the possible loss of principal. Independent Financial Services and First National Bank of Pasco are independent of Raymond James Financial Services. 

Any forecast is not a guarantee of future performance. Investing involves risk and investors may incur a profit or loss.