The market pullback we’ve been anticipating seems to have arrived. It’s important to note that the markets have not experienced a correction since September 2011, a long time compared to most market cycles. While analysts do not expect the pullback this year to be severe, what should we expect? The first three articles this week address the current market conditions. Liz Ann Sonders, Chief Investment Strategist for Charles Schwab & Company answers the question of whether the bull market is dead. Jeffrey Gundlack and David Rosenberg debate which direction interest rates will take in 2014. Lorraine Woellert reports on the release of an important economic indicator. It explains the economic boost the service industries have received, with hiring increasing the most in the last three years. We close this week with some tips for small business owners on how to rein in healthcare costs. With the employer mandate looming, there’s no better time to plan for the future.
So Cruel: Pullback Could Become Correction– Liz Ann Sonders, Chief Investment Strategist for Charles Schwab & Co., thinks the stock market’s pullback could eventually become an actual correction (decline of at least 10%). But she also believes the secular bull market that began nearly five years ago is not dead … just taking a breather. http://www.schwab.com/public/schwab/resource_center/expert_insight/todays_market/sonders/sonders_so_cruel.html?requrl=/public/schwab/resource_center/expert_insight
Treasury Debate: Gundlach (Bull) vs. Rosenberg (Bear)– Advisor Perspectives covers the current difference of opinion on the direction of interest rates in 2014. While Jeffrey Gundlach of DoubleLine Capital predicts yields will fall in 2014, David Rosenberg of Gluskin Sheff & Associates thinks yields will rise to 3.5% or 3.75% as the economy improves.
http://advisorperspectives.com/dshort/guest/Shedlock-140204-Treasury-Debate.php
Service Industries in U.S. Grew More Than Forecast in January– An important economic indicator was released this morning. The non-manufacturing sector index increased to 54 from 53 in December. Readings greater than 50 signal expansion, and demand for services continues to strengthen as employment grows and housing prices rise.
http://www.bloomberg.com/news/2014-02-05/ism-non-manufacturing-index-rose-to-54-in-january-from-53.html
7 Strategies For Small Businesses To Reduce Health Care Costs– The once-delayed employer mandate in the Patient Protection and Affordable Care Act takes effect Jan. 1, 2015. Here are ways small businesses can lower health care costs with the new requirement looming.
http://www.journalofaccountancy.com/News/20149468.htm
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John R. Day, Bill Ennis, Stephanie Davidson and Matt Heller