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Market Expectations in The Coming Years

Today’s new on Syria has added another moving part in the fragile stock market. Over the past few weeks the markets have been worried that at some point the fed will begin to taper QE. Today there is news about a possible intervention into Syria. So with all of these issues, what should investors expect in the coming years?

The first thing investors must worry about is the action from the Fed, if the fed begins to taper QE it could cause a market correction but should not cause a major crash. In general, economic fundamentals are moving in the right direction. Employment is improving, retail sales are improving, GDP is growing, manufacturing is up, and home sales are climbing. This will naturally support the market and prevent a major decline according to Tobias Levkovick of Yahoo Finance.

According to Levkovick, you should expect a 10% increase in the overall market in 2014. So for the long term trader there might not be much to worry about. If you are trading short term, the issue in Syria and Fed program will have an effect on returns.