Prudential To Release Economic And Retirement Outlook
According to a release,
"The new normal is beginning to look like the old normal. We've seen significant growth in 2013 and we're now experiencing a robust economy that we used to think of as normal," Keon said.
"The key to investing is to think one or two moves ahead of the market. Our asset allocation portfolios remain heavily overweight in stocks today, but our research is focused on factors that might cause the next bear market. By preparing for the eventual downturn and evaluating when and why it might happen, we can more confidently harvest the gains while this bull market runs. For now, we think the most likely causes of a new bear, high inflation and/or contractionary monetary policy, are well down the road."
"Monetary policy is moving into a period where Dr. Yellen will be focusing on forward guidance. The economy is getting better. The question that we have is how forward can forward guidance carry us? Perhaps it's more of a stock picker's market than a QE (quantitative easing) cures all market," Krosby said.
"I'm reminded of that old saying, 'When the U.S. sneezed, the rest of the world caught a cold.' This year, we got a strong and unambiguous reminder of that. When the Fed begins to taper, that has clear implications for global markets," Praveen said. "There is deflationary pressure in the Eurozone, so we can expect further easing measures by the ECB.
In the fixed income markets,
"With the 10-year treasury rate skirting three percent, we think the market has already priced in the Fed's taper and that rates should hover around current levels unless economic growth surprises to the upside, or the Fed moves more aggressively than expected to end its bond purchases," Lillard said. "Conversely, rates could trend lower during the year if the economic backdrop disappoints and inflation remains below the Fed's target."
"A secure retirement is achievable for every American that has access to a 401k or similar plan. If investors take full advantage of their workplace options to save more and continue to diversify, they can be prepared and have adequate income in retirement to supplement
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