Where is the Stock Market Going in 2014?

First of all I do not have a Crystal Ball.  I can only share with you my personal beliefs, personal research and the research, articles and comments by the so called "experts".  With that said I tend to agree with the so called "experts" for the upcoming year.

We are set for an upward trend in the market for 2014.  But don't hold your breath waiting for another year like 2013 in 2014 or several years down the road.  I see Individual Stocks doing much better than Mutual Funds.  But not so much better that they warrant inexperienced investors to leap into the individual markets.  Both individual stocks and mutual funds will both rise over 2014, but nothing like in 2014.  The uphill climb will continue, but at a much slower pace.  Those that have starting investing in individual stocks I warn to stay away from "most" pharmaceutical companies.  If you want a good pharmaceutical diversification in your portfolio I suggest a good mutual fund like PRHSX.  I am staying away from Pfizer (PFE).  But if you want a better choice and what some Pfizer in your portfolio I am going to suggest Zoetix (ZTS).  This is Pfizer's Pet Medication company which is growing, but you need to be in this one for the long haul and it has had it's ups and downs.  I just don't feel most pharmaceutical companies are the place to be in 2014 due to most all of them have no new or exciting drug releases on the burner and without that, one big lawsuit on one of their existing drugs will kill you with the that stock holding.  If you are looking for Individual Stocks, there are going to be some good buys to make, but you are going to really have to hunt and research to find them.  If you are looking at Individual Stocks in the list of the DOW 30 my suggestions are 3M who has been killing it and I think will continue to climb about 20% more in 2014.  I would also be looking at Boeing and Caterpillar to do about the same.  Another good consideration is Walt Disney and Intel.  There are a couple of others that have some good potential, but I am for sure staying away from Pfizer, Wal-Mart, Johnson and Johnson, and Proctor and Gamble.

What about the Mutual Funds?  I am sticking with Large Cap and Small Cap funds for 2014.  The growth will be slow but I think these are your best choices over most other mutual fund sectors.  Can you look at mutual funds with bond holdings in them?  I am going to say yes for 2014 with caution and moderation.  I would not go with a mutual fund that has more than 20 to 25 percent in bond holdings and the stocks in the mutual would have to be real winners.

What about Bond Funds?  Well, I pretty much answered that question all ready.  A mutual fund made up entirely of bonds I am going to stay far away from for 2014.  Although interest will continue to climb, I still think there are better places to invest your money.  I don't foresee Bonds playing a significant roll in 2014.

What about CD's and Annuities?  Not even a viable option in 2014 for any investor at any level.  Interest rates will not go up significantly enough to help them.  Also CD's and Annuities interest rates are slow to be raised by banks and insurance companies.  I cannot recommend them for 2014.  A better option for those who are very conservative investors is a good balanced mutual fund or conservative managed account through your financial advisor.  J P Morgan Chase has some excellent Managed Account options.

What about Precious Metals?  I think we are going to see much the same with Silver, Gold, other precious metals and the companies out there that mine them.  I don't think that they are going to do a whole lot for your portfolio in 2014, but the prices are low right now and interest rates are starting to go up and that is the prediction for the future.  Buying Gold and Silver in small amounts in your portfolio may be viable as interest rates climb again, but you are going to be waiting a few years to cash in.  So I see it as a long term investment that you are going to have to hold for several years in your portfolio to see a good profit.

I hope this information is helpful to you for 2014.  Hope we see better come year end than what I am seeing now.  Only time will tell.

Gus S.


Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.