Eventful Year In Store

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    “Amid economic and political uncertainties, a heavily debated potential QE taper, and rising rates in some countries and plummeting rates in others, 2014 has the makings of another eventful year for asset managers and their clients,” says Warren Thomson, chairman and CEO of Manulife Asset Management. It has issued its ‘Global Intelligence: The Outlook for 2014’ report analyzing the major trends and developments it anticipates for the year. 2014. Drawing from on-the-ground knowledge and investment expertise of the firm’s global network of portfolio managers and analysts in North America, Europe, and Asia, it is designed to identify trends and key issues that may impact investors in the coming year. Its economists think a stronger job market could prompt the Fed to start tapering its bond buying program between December and March, with March being their best guess. But if sufficient progress isn’t made, the Fed may not move at all. China will be a key story in 2014 with investors watching to see if it can maintain its GDP growth rates and continue with its reform agenda, it says, and the macro-economic environment will be additionally important in the year ahead as brightening global growth prospects would impact positively on the world’s major trading nations and commodity-producing countries. As well, its asset allocation team looks past 2014 and anticipates returns for equities and non-investment grade bonds, including high yield and floating rate loans, will outpace traditional bonds in the next five years. The report is at 2014 Outlook