The biggest trend of 2014 has been the incredible outperformance of the American economy when compared to the rest of the world. That divergence has reduced bond yields, sent the dollar surging, crushed commodities, and been a big tailwind for equities.
However, as stock prices have continued to surge, valuations have become more stretched and appear to have outpaced economic growth. That has left investors who watch traditional metrics unsure of how to invest in the year ahead.
“You can see the glass as half full or half empty,” said Curtis Holden, senior investment officer with Houston-based Tanglewood Wealth Management. “It’s half full because the U.S. right now looks pretty good as a place for investing verses the rest of the world. But it’s half empty because this is a below-average recovery by our standards.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.