Our key market calls for 2014

As the Fed gradually begins to scale back its monetary stimulus this year, we expect the dollar to rise and government bond yields to continue to drift higher. We also think investors’ appetite for “risky” assets is likely to wane. In general, though, we do not expect the prices of such assets to fall back sharply given that monetary policy in the US and elsewhere is set to remain highly accommodative. Below we provide some of our key calls for 2014 together with revised forecasts where appropriate.