savings-bonds-50

Equity’s great year was at the expense of fixed income, and that trend is just getting started, says a report by NEI Investments.

Read: Investors rely on domestic market to fund retirement

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.

Read: Help clients boost bond portfolios

The good time for equities will keep on rolling in the medium term, the firm predicts, despite the initial retraction in 2014.

Key Findings:

  • 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.

Read: When rising markets make clients skittish

Originally published on Advisor.ca

Add a comment

You must be logged in to comment.

Register on Advisor.ca