Nine market predictions for 2014 from Deutsche Asset & Wealth Management
Deutsche Asset & Wealth Management’s Co-Chief Investment Officer Asoka Wöhrmann takes nine positions on the markets. This is an article we will come back to later on in the year.
1. Solid global growth in 2014: 3.7%
2. The Eurozone economy is likely to gain momentum: 0.9% (2014)
3. The Euro Stoxx 50 is likely to rise. Our 12-month prediction: 3,400 points (Dax: 10,150)
4. Fed tapering: Quantitative easing will likely end in the third
5. Policy rates in the United States, Japan and the Eurozone are likely to remain
6. Yields of 10-year Bunds are likely to rise. Our 12-month prediction: 2.25%
7. Risks for stock markets: Rising interest rates are hurting stocks in emerging economies. Added to this is political unrest in some emerging countries.
8. The European Central Bank may take aim at the strong euro – a thorn in its side.
9. Asset allocation of our balanced model portfolio for clients based in Europe, Middle East & Africa: Fixed income: 41.8%, Equities: 46.8%, Absolute return: 10%, Commodities: 1.4%
Deutsche Asset & Wealth Management manage client assets totaling €923 billion (as of December 31, 2013).