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

Disappointing Report on China's Economy Shakes Markets

In London and New York shares lost 3 percent, while Paris and Germany dropped around 2.4 percent More

DRC Tries Mega-Farms to Feed Population

Park at Boukanga Lonzo currently has 5,000 hectares under cultivation, crops stretching as far as eye can see, and is start of ambitious large-scale agriculture plan More

Video War, Drought Threaten Iraq's Marshlands

Areas are spawning ground for Gulf fisheries, a resting place for migrating wildfowl, source of livelihood for fishermen and herders who have called the marshes home for generations More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Nobel Prize Winner Malala Talks to VOAi
X
August 31, 2015 2:17 AM
Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.

VOA Blogs