NEW YORK (TheStreet) -- As 2013 comes to a close, what's the best course of action for investors heading into the new year? Scott Wren, senior equity strategist at Wells Fargo Advisors, told TheStreet's Ruben Ramirez that investors should stay in equities for 2014.
GDP grew about 2% in 2013, Wren said, but he expects it to grow around 2.4% in 2014 as the economy continues to improve. He added that the labor market should also improve.
In terms of valuation, Wren said stocks are still below the historic average on a PE ratio basis. In that regard, he considers a pullback between 5% and 8% to be a tremendous buying opportunity for investors who are under-exposed to equities.
He added that many of his company's clients have way too much cash right now, and the goal is get them off the sidelines and into stocks.
Wren concluded that 2014 should be another strong year as the economy continues to improve. He said investors should consider more cyclically sensitive stocks.
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