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New Year, New Investment Ideas

December 2013

Nick Clay

Investment Manager – Global Funds, Newton

 

Matthew Griffin

Managing Director, The Boston Company Asset Management

 

David Leduc

Chief Investment Officer, Standish Mellon Asset Management

INVESTOR, BRACE THYSELF

What can you look forward to in 2014, if you're an investor? Uncertainties, lots of them, say industry thought leaders. How the year ends up will be anybody's guess, especially as it pertains to Fed policy, which could become the hero or villain of this thriller.

The Fed's response to the financial crisis of 2008 is still somewhat of an experiment, according to Matthew Griffin, Managing Director of The Boston Company. "We've never seen interest rates this low, for so long," he says. For investors, the danger includes mispriced market risk. Matthew suggests looking at companies with the potential to grow earnings in what will be a "modest economic growth environment" going forward.

A stronger U.S. economy

David Leduc, Chief Investment Officer at Standish Mellon Asset Management, sees an environment that will be positive for particular sectors like corporate bonds. The catalyst for this will be the U.S. economy. He expects it to continue growing at a stronger pace in 2014 with the easing of surface friction due to fiscal cutbacks. Still, there will be challenges: "continuing concerns about the rate environment, Fed policy and the impact of tapering on interest rate expectations," David says.

For Nick Clay, Investment Manager at Newton, 2014 could deliver a "multitude of outcomes, probably all of them." Why does he think that? "We feel the economic growth that everybody is waiting for, is hoping for, is not going to come true," he says. So, what should an investor do? Nick proposes considering things that have the potential to grow, independent of any volatility in the background. But do remember that "we're in a volatile world and you need to invest accordingly."

Three investment experts; great minds, different vantage points.

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