Equity’s great year was at the expense of fixed income, and that trend is just getting started, says a report by NEI Investments.
Last year, the U.S. market had a return of 41.37%, while Japan had a return of 35.83% and Europe returned 34.67%, the report notes. It’s a turning point, and now the shift away from bonds and into equities is beginning in earnest.
The good time for equities will keep on rolling in the medium term, the firm predicts, despite the initial retraction in 2014.
- Most indicators suggest equities are still stronger than traditional income investing
- Canadian equity portfolios performed well in 2013 in absolute terms, but were dragged down by softer commodity prices
- Europe, Asia Pacific and select emerging markets represent some of the best opportunities
- Investors will benefit from active investment management.