Predictions for US Financial Markets 2014
Every year, since the recession of 2008, investors, economists and businessman predict the future of the financial markets. The global financial growth each year is slightly different from the previous year. The global markets had dulled down in the year 2013. But the predictions have been ever so consistent. This year too US financial markets have suggested predictions for the coming year.
Though last year was quite a dull period for financial markets in US, there were some financial factors that performed well. This year too, people have predicted the state of the financial markets. Only time will tell if the financial predictions etched out are going to be accurate or not. Here are the 5 financial predictions for the year 2014.
Growth by 4
It has been predicted that the US economy will grow by 4% this year. Though IMF and other mainstream economists have predicted a 2.5% growth, the figurative growth will be 4%, There is a good reason behind this prediction. One the US economy has already shown a 4.1% growth while the growth in private sectors has been observed to be 4.9%. At this rate if US marches towards a 4% growth, it will enhance global growth too. This means 4% will replace the 2%. This is not a random prediction, but one that is supported by logic.
Continuing Trends of 2013
Some of the trends that started out in 2013 will gain pace in this year. These trends include rise in equity pricing globally, which will give a sharp edge to trading of equities. There would be an overall shift in the stock markets. There would be a 6-7% growth in global economy which will in turn pace up the corporate revenues. This prediction comes in the wake of high interest rates in the stock markets. But, if history is anything to go by, this will only help recover global economy and accelerate economic growth.
European Crisis Converts to Political Issue
Yet another prediction for financial markets by US includes the European crisis which has curbed the global economy. European bankers will try to hold control over the money as soon as the economy begins to improve. This will escalate into a major political crisis in the European markets as this economic growth would be a result of the real estate boom, which is being controlled heavily. This will eventually result in imbalance of the British economy as the central banks will face pressure. Euro will eventually weaken and the monetary as well as fiscal policies will face panic trigger.
Emerging Markets make a Comeback
In the year 2014, US economy will grow by 4% while the economy of China will see a growth of 7-8%. At this point, investors will feel safe with emerging markets. These markets will have strong prices for their commodities as well as a safe economic condition. The only hitch would be a political crisis in the calling. The economies of emerging markets with stable political conditions would see more investors as compared to those with unstable political conditions.
