Tags: Moore | Fed | policy | stocks

JPMorgan Strategist Moore: Fed Policy Will Still Support Stocks in 2014

Tuesday, 24 Dec 2013 07:56 AM

By Dan Weil

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Federal Reserve policy will continue to help boost stocks in 2014, says Kate Moore, chief investment strategist at JPMorgan Private Bank.

The Fed decided last week to taper its quantitative easing by $10 billion a month in January, to $75 billion.

"Even in our most bullish case scenario, we're still going to be seeing significant asset purchases throughout all of 2014," Moore told CNBC.

Editor’s Note:
Obama’s Budget Takes Aim at Retired Americans

"We're a couple of years away from the Fed 'normalizing' policy, and until we're seeing a real tightening of rates, until we see businesses really get affected by higher rates, we don't think we have to worry."

While stocks will be in a "good position" next year, it's not a time to buy equities indiscriminately, she noted.

"You need to really think about what companies, what stories, what themes can have legs in a gradually recovering, pretty constructive growth environment."

So what sectors does JPMorgan recommend? "We like tech, industrials, financials, parts of the healthcare space, despite its very strong performance in 2013," Moore said.

"We're looking for real cyclical leadership in 2014, but also more differentiation between markets. We don't think it's going to be an easy market to just buy the broad index and say we're going to be able to print the same kind of 20-plus, 25-plus returns that we had this year."

Major stock indices hit record highs again Monday.

"It's a cauldron of bullish factors," Donald Selkin, chief market strategist at National Securities Corp., told Bloomberg. "There's the seasonal factor, the IMF [International Monetary Fund] raising its forecast and the Fed saying they're going to keep the federal funds rate low."

IMF Managing Director Christine Lagarde said Sunday that The IMF is raising its outlook for the U.S. economy.

Editor’s Note: Obama’s Budget Takes Aim at Retired Americans

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