Best investment ideas: High-quality growth stocks
It's all about economic growth for stocks in 2014, some experts say. "As long as global growth remains status quo (i.e., modest) or accelerates, the place to be is certainly in equities," says Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills, N.Y.
And that's the scenario he sees playing out. "We're likely to see U.S. stocks and European stocks continue to rise," Ghriskey says. If growth accelerates, it could also boost emerging markets stocks, which are highly leveraged to the global economy, he adds.
The International Monetary Fund predicted in October that global economic growth will total 2.9 percent for 2013 and 3.6 percent for 2014.
As for the U.S., "it appears increasingly that equities are breaking into a new bull market after 10 years of rangebound trading," says Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn. "Currently, small-cap, economically sensitive and high-beta (high-risk) names are leading the market."
But that may shift to higher-quality growth companies next year, he says.
Mick Heyman, an independent financial adviser in San Diego, is bullish on industrial and technology stocks. "I think manufacturing will continue to pick up. It won't be massive, but if there's just a little upside surprise, I think that's enough to send stocks a little higher," he says.