With 2013’s market trends (stocks up, bonds down) seemingly established, and year-end fundamentals pointing to improvement and growth, the forecast was for 2014 to be more of the same – perhaps even better. Anticipating happy news, investors jiggered their portfolios, then sat back to watch the “January effect” launch the New Year’s bull market, while their former favorites, bonds, wallowed. Instead, from day one, both 2013 trends made U-turns.
With all signs pointing one way, why did the markets go the other?
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