Fiscal and Monetary Policy as We Enter 2014 Essay

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Some of the things that will be on the forefront of investors’ minds as we enter 2014 will be fiscal and monetary policy, Janet Yellen, commodities, stocks, bonds, gold, Iran, China and Japan, just to name a few. Not to mention the likelihood of unforeseen issues that will need to be addressed as the year unfolds. We mention these items not to cause concern, but to elaborate on the scope of considerations that are a part of our ongoing process to construct an efficient portfolio capable of weathering a variety of economic and geopolitical storms. The end of 2013 witnessed an increasing degree of positive economic data, from employment numbers to manufacturing to auto sales. While the numbers are not grossly excessive, they are trending in…show more content…
Some of the things that will be on the forefront of investors’ minds as we enter 2014 will be fiscal and monetary policy, Janet Yellen, commodities, stocks, bonds, gold, Iran, China and Japan, just to name a few. Not to mention the likelihood of unforeseen issues that will need to be addressed as the year unfolds. We mention these items not to cause concern, but to elaborate on the scope of considerations that are a part of our ongoing process to construct an efficient portfolio capable of weathering a variety of economic and geopolitical storms. The end of 2013 witnessed an increasing degree of positive economic data, from employment numbers to manufacturing to auto sales. While the numbers are not grossly excessive, they are trending in a more positive direction, which we believe may lead the Fed to begin their tapering process sooner than otherwise anticipated. The noticeable drop in the jobless rate, for example, while positive, was partly due to the return of furloughed government workers after the federal government shutdown in October; driving the unemployment rate down from 7.3% to 7.0% in November. According to the Institute for Supply Management, economic activity in the manufacturing sector expanded in November for the sixth consecutive month, while economic activity in the non-manufacturing sector grew in November for the 47th consecutive month. Also in November, annual car sales in the US hit 16.4 million, well up from 15.3 million in November of 2012 and the
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