The US markets are expected to perform well in 2014, but the gains are likely to be muted compared with this year. Further tapering under the new Federal Reserve Chairman, Janet Yellen will be a major bugbear for global markets. Elections in Euro Zone can keep investors there on the back foot. Japan will continue to get support from ‘Abenomics’, but the pace of growth in equity markets witnessed in 2013, could be hard to sustain.
Both BRICS and the emerging markets will continue to feel the heat of US tapering. But the impact could be less as most of the damage has been already done. Pace of economic recovery will determine stock price moves in these markets. In India, the outcome of the general election could be a decisive factor.