A: The Fed isn’t likely to reduce its pace of accommodation any time soon given still-elevated unemployment. However, stronger economic growth could lead the central bank to pull back on the pace of accommodation later this year.
Q: What’s the outlook for emerging markets?
A: Although emerging markets have gotten off to a poor start in 2013, they still should outperform developed markets this year thanks to cheaper valuations.
Q: Where are the opportunities in fixed income?
A: I still like credit, including bank loans, over Treasuries and see opportunities in municipal bonds.
Q: What equity sectors are most attractive?
A: Some equity styles and sectors I prefer include US mega caps and the global technology and energy sectors.
Looking for more specifics regarding what I expect for this year as well as which investments I prefer? You can find more details in the What’s Next piece as well as in my monthly Investment Directions commentary and Market Perspectives papers. You can also send me a tweet, using #askRuss.
Russ Koesterich, CFA, is the iShares Global Chief Investment Strategist.