Over the past four years investors have become accustomed to one constant in the equity markets—when the Federal Reserve acts, stocks move, at least for a little while. Stocks soared through the summer months in anticipation of another round of liquidity from both the Federal Reserve and the Europe…
BlackRock's Rick Rieder expects the bond market to focus more on alpha creation next year, but investors should watch for rising duration risk as well as ongoing troubles in Europe.
Although the economy needs to improve before theFed raises key rates, some dividend payers might act as good hedges amid higher rates, while others have something to lose, says Morningstar's Josh Peters.
Although theFed hopes more quantitativeeasing will raise asset values and spur the wealth effect, it runs the risk of blowing another bubble, says Morningstar's Bob Johnson.