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Investments » There’s no question that 2013 was a banner year for the U.S. stock market with more than 20 percent growth on most portfolios. That’s because the market is generally a forward-looking indicator of the economy, said Matt Johnson, managing director of Zions Wealth Advisors, and it was predicting that 2014 was going to be a healthy year.
This year, however, expectations on the stock market’s performance will be lower, he said. It will be more like single-digit growth. "The market has already rallied based on those expectations ... for 2014," he said. "So things need to work out even better than what people have expected."
As far as particular sectors that might see good results this coming year, Johnson thinks global companies will do well now that areas like Europe are finally coming out of a recession. Emerging markets that have not rallied before in areas such as in Brazil, China and India could become more attractive, he added.
Still, the key word in investment strategy is the same as it’s always has been: diversification. Johnson said stay smart, spread the risk evenly, and don’t be shocked by economic news reports and overreact.
"A lot of things are just noise," he said about economic news that may affect your decisions. "It’s almost better to not pay attention to the noise. Have a plan in place that makes sense, and have proper diversification. Don’t get swayed by the news of the day."
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