News / USA

Wall Street Rolls into 2014 with Strong Market Year

A trader works on the floor of the New York Stock Exchange shortly after market opens on Dec. 19, 2013.
A trader works on the floor of the New York Stock Exchange shortly after market opens on Dec. 19, 2013.
Bernard Shusman
U. S. stock markets made strong gains in 2013, climbing more than 3000 points since January. The Federal Reserve decision to trim its stimulus as of January, 2014 encouraged investors further. Analysts are all smiles about 2013 but slightly wary of 2014. 

The ticker in Times Square tells the story. The runup in investment portfolios during 2013 has been dramatic, and most analysts attribute it to the work of the Federal Reserve. Peter Cardillo, chief market economist, Rockwell Global Capital, says it has been an exciting year."
 
Strong Market Year As Wall Street Rolls into 2014i
X
December 21, 2013 12:58 PM
U. S. stock markets made strong gains in 2013, climbing more than 3000 points since January. The Federal Reserve decision to trim its stimulus as of January, 2014 encouraged investors further. Analysts are all smiles about 2013 but slightly wary of 2014. VOA’s Bernard Shusman reports on the year on Wall Street.

"Of course the markets have done quite nicely, stocks have enjoyed a nice runup, investment portfolios are at their highest level," he said. "Part of that is due to the fact that the government , the central bank, has been extremely generous. They put a lot of liquidity into the market."

John Allison of Unio Holdings says the Fed reducing stimulus bond buying by $10 billion to $75-billion, may have a negative effect on the stock market.

"The Fed has been a big buyer of mortgages. The Fed has been a big buyer of U-S bonds, which has put money into the hands of the U.S. government, which then , in turn, spends it in the economy, whether it is individuals, contractors, the defense business or what have you," he said. "That has been the overwhelming reason why there has been a tailwind in the market."
 
Allison says, "As that happens, I think interest rates will continue going up, and markets have a perverse way of not liking interest rates going up no matter how good the environment. So I see the U.S. as a bit of a mixed bag."

Most analysts agree that people should stay with their investments even if the market goes down and say it is a good time to buy.

Professor Stephen Brown of New York University's Stern School of Business supports the theory of long term investing in the market. He says, "Anyone investing in the markets is investing for longer term, so what happens in the short term nobody can say. But in the longer term, if we believe in America, we believe that this is a reasonable way to invest your money.
 
The market and most investors do not like uncertainty. The Fed’s recent move to trim the stimulus but keep interest rates low is an effort to reduce that uncertainty, support growth in the U.S. economy and give confidence to the rest of the world.

You May Like

Turkey's Controversial Reform Bill Giving Investors Jitters

Homeland security reform bill will give police new powers in search, seizure, detention and arrests, while restricting the rights of suspects, their attorneys More

Audio Slideshow In Kenyan Prison, Good Grades Are Path to Freedom

Some inmates who get high marks could see their sentences commuted to non-custodial status More

'Rumble in the Jungle' Turns 40

'The Champ' knocked Foreman out to regain crown he had lost 7 years earlier when US government accused him of draft-dodging and boxing officials revoked his license More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Victorious Secularists Face Challenge to Form Government in Tunisiai
X
Henry Ridgwell
October 30, 2014 11:39 PM
Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Victorious Secularists Face Challenge to Form Government in Tunisia

Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Africa Tells its Story Through Fashion

In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

All About America

AppleAndroid