S&P 500
1930.67
-39.40 -2.00%
Dow Indu
16563.30
-317.06 -1.88%
Nasdaq
4373.45
-89.45 -2.00%
Crude Oil
97.78
-0.39 -0.39%
Gold
1282.000
-13.230 -1.02%
Euro
1.338720
-0.000985 -0.07%
US Dollar
81.442
-0.018 -0.02%
Weak

It's 2014, Now What?

Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your market Outlook for 2014.

Well, here it is 2014, and I would like to wish all of our members, friends and traders around the world a very happy and prosperous new year.

Let's start with the indices which had a spectacular year in 2013, in fact, it was their best year since the mid-90s. Are we likely to see those same returns in 2014? I seriously doubt the indices are going to see double digit growth like they experienced last year. What I do expect to see are much more volatile markets as the Fed begins to extricate itself from its grand experiment. It certainly is not clear to anyone that we are going to get out of this "grand experiment" without any pain. You look at a stock like Netflix (NASDAQ:NFLX), which was certainly the star performer last year managing a gain of 296% for the year, can that continue?

According to a recent poll our blog at least a 50% of the voters expected the trend to continue in 2013. I'm not so convinced, but I would like to see what the Trade Triangles say and go with that strategy in 2014.

Here are some of the head winds I see for this new year;

1. How does the Fed extricate itself out of this grand experiment of Quantitative Easing (QE).

2. Is inflation coming back into the picture?

3. Is talk of a minimum wage hike going to create a problem for businesses and profits?

4. Has gold finally found a base at the $1,200 level? And what's the outlook for this distressed asset in 2014?

5. How much are politics and world events going to create problems for the market?

There are so many uncertainties as we move into 2014 that making any kind of year forward analysis is either egotistical or just plain stupid. I will as always be looking closely at the Trade Triangles and let them tell me which direction the markets are headed. This type of strategy not only puts the odds in your favor, it also saves you time and effort trying to analyze an increasingly complex set of metrics that determine the price of every market.

Every success in 2014,
Adam Hewison
President, INO.com
Co-Creator, MarketClub

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Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.

Comments

  1. cferg says:

    I'll let the charts tell me what is happening but I like the gold and silver miners for 2014.

    • Jeremy Lutz says:

      Hi Cferg,

      Happy New Year! I agree with you about letting the charts tell the story. Adam will be posting a special report on Gold today that you should find interesting, so stay tuned.

      Cheers,
      Jeremy

  2. David B Macrory says:

    In my opinion one of the hallmarks of the 2014 investment year will be a new and sustained bull market
    in precious metals. The unfolding opportunity today is comparable to the rare opportunity in gold and
    silver related investment markets that were present at these historic turning points:

    #1. 1931.
    #2. Early 1970’s.
    #3. August 1976.
    #4. November – December 1978.
    #5. August 1999 and early 2002.
    #6. And now -- early 2014.

    At some of these historic times the actual ownership of physical gold was restricted, or even “illegal”.
    At such times (example-- early 1970’s) the opportunity was still present -- via the shares (stocks) of gold
    and silver mining companies, such as Homestake Mining in the 1930s, and in the early 1970’s.

    Today, this investment opportunity offers many choices, including more than a-half dozen listed gold
    mining companies that are considered “majors”; and there are precious metal ETFs, traded on major
    exchanges; gold funds; and there is also the opportunity in U.S. Mint produced gold and silver Eagle coins.

    For 2014, diversification into the precious metals investment markets could be one of the most
    Important investment decisions one could make at this point in investment market history.

    • Jeremy Lutz says:

      Thanks for the great information David. Adam will be posting a special report on Gold today that you should find interesting, so stay tuned.

      Thanks,
      Jeremy

    • Rasesh Shukla -India says:

      Just from this INO Plateform, i am bear, in Gold Since it was traded about $ 1850+++, even at that point too, I had forecast 1200 and $ 800 marks, and til, i am bear, chart tell some different matter, and according to a present chart status, bull run seems quite difficult, because so many resistance required to be crossed.

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