Tax Advice Santa Rosa – WHY 2014 MAY BE A VERY GOOD YEAR

January 7th, 2014 → 7:27 pm @ // No Comments

More improvement may be in store for the economy & the stock market.

Will the economy & the bull market make further strides in 2014? On both Wall Street and Main Street, 2013 turned out better than many analysts expected. Will the recovery gain additional momentum in 2014, and will stocks climb even higher?

Optimism is widespread. Do you remember how gloomy things got at the end of 2012? Fears about imminent economic damage from the fiscal cliff and sequester cuts were pervasive, and bears sensed that stocks might retreat. The economy and the market withstood these anxieties and others. Hours after the Federal Reserve announced it would scale back its asset purchases in 2014, the Dow closed at a fresh all-time high of 16,167.97. December 18 was the index’s best day in more than two months.

Weren’t investors supposed to be disappointed when the taper occurred? Let’s just say the timing was right. In August, just the hint of an oncoming taper resulted in a 5.6% dip for the Dow. Months ago, some investors were still questioning the strength of the recovery. Today, there is less to question. As Wells Capital Management chief investment strategist James Paulsen commented …Read More

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