Playbook For 2014

We're looking at the Fed being accomodative for the forseeable future,said Stephen Wood,chief market strategist at Russell Investments.We think there is gonna be a glacial improvement in the labour market;2014 is gonna be an OK year.
Investors need to look to a diversified portfolio and Europe.Look to equities with the market where it is right now.Security selection,stock picking,active management are gonna be very important.
They need to go over this market with a fine-toothed comb.It's getting more challenging,but there are still opportunities out there,Dr.Wood observed.*
They fought 3M,the best American innovator,and they lost,said CNBC analyst Jim Cramer.Blackberry isn't as bad as people think.Look at Sprint.Management turned it around.Sprint needed a lot of money.Someone gave them a fortune-Softbank-and they're staying competitive.
Clorox is supposed to be an 85 in this situation.It is 92.80.The playbook says you should sell Clorox,but they're not going down.We're in a hope springs eternal market.This is Klaus Kleinfeldt's year at Alcoa.
As CDs roll over,what are people going to do?People have to drop their cynicism and drop their polemics.It's a good market,the successful investor Jim Cramer noted.*
Clorox(CLX),Sprint(S),Blackberry(BBRY),3M(MMM),Alcoa(AA)

Market Strategy:The Deleveraging Process and the Investor

The politicians in Washington are now facing up to years of deficits and expiring tax breaks,and there will be real consequences for investors.They need to take care of spending first,according to Stephen Wood,PhD,Chief Market Strategist at Russell Investments.Even if everything goes right,you're looking at -1% GDP.If everything goes wrong,there will be -4 GDP.
If no agreement is reached on the budget,sequestration will come into force.Sequestration means government spending being take out of the economy.This is what deleveraging looks like.How much government are we willing to pay for?That's going to be less than in previous years.
Investors are going to need to look for a globally diversified,mixed strategy.Look at commodities and emerging markets.
We need to manage expectations of investors.People are being forced up the risk spectrum.They're gonna need more risk to get the returns they're accustomed to.
We've gone from apportioning revenue to apportioning debt.The process isn't that fun to witness,but the end result will be good for our country.
Dr.Wood conducts research on the economy,capital markets,portfolio strategies and investor behaviour.He interfaces with Russell's institutional clients and retail partners to communicate the firm's perspectives on the global market,investment process and portfolio management.He is a frequent guest on business television.

Chief Market Strategist:What To Look At Now

There really is a sense that something very profound is happening in Spain,said Stephen Wood,PhD,Chief Market Strategist at Russell Investments.There's a sense they're on the edge of something big.It's the fourth largest economy in Europe.We're facing one of the first global stimulus packages in four years.
The UK is just chugging along as it always has.I would have to say the US right now has much stronger fundamentals.They may be better than China right now.Corporations have strong balance sheets.
You need globally diversified,multi-asset portfolios.The Federal Reserve is forcing people up the risk spectrum.I would be looking at emerging markets and corporate debt,Dr.Wood advised.
Stephen Wood conducts research on the economy,capital markets,portfolio strategies and investor behaviour.He interfaces with Russell's institutional clients and retail partners to communicate the firm's perspectives on the global market,investment process and portfolio management.He is also a prominent media spokesman for the company's views.

Russell Investments:What Makes Sense Today

Europe is a huge source of unknowable risk,in the view of Russell Investments' Chief Market Strategist,Stephen Wood.The U.S. economy is doing a hair better than O.K.It is growing.When the market focuses on U.S. fundamentals,it tends to do well.
A globally diversified portfolio of risk assets makes sense.They outpace inflation and give you some return.If you look at the pullbacks as opportunities to get in,you've been able to nickel and dime your way in.The emerging markets are gonna be good in 3-5 or 5-7 years.
Corporations are much less likely to default than governments.Equities could end the year positive on the backs of earnings.
We have a market-based culture,with government institutions responsive to the market.It's more confrontational in Europe.You kind of grind it out here.We've got a number of years to work through these debt issues,whereas in Italy and Greece they've got a couple of days,in Dr.Wood's opinion.