Friday, Jan. 3, 2014

Interest rates will rise slightly under their own power, the Fed will continue to reduce QE monthly bond purchases but there is enough liquidity in the world to absorb the extra supply.

The economy will slow down in certain sectors like housing in response to higher rates. I expect the housing sector to cool off a little as people adjust to higher mortgage rates, this should be a pause nothing more.

The dollar should strengthen and the US economy will see a slight erosion of the competitive edge it has enjoyed due to the weak currency. This will be most notable in areas like New York City which benefit from tourism.

Stock market should continue to march but not at an annual 30% clip like last year.

It might be too much to wish for, but it seems like some of the mean spirited, nasty, partisan gridlock in Washington might be easing. Fingers crossed.