This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How Bank of Japan Will Save U.S. Investors in 2014

NEW YORK (TheStreet) -- As the Federal Reserve carries on with its steadfast tapering, many investors are bracing for a collapse in asset prices, worried they'll no longer be privy to the support of low interest rates and easy money.

However, BlackRock's San Francisco-based chief investment strategist Russ Koesterich says that actually, asset valuations will continue to rise this year, generating positive returns for investors in both the equity and fixed-income classes. BlackRock is the world's largest asset manager, overseeing more than $4.3 trillion in assets.

The drivers behind that: the Bank of Japan and the European Central Bank, because they're leaning toward maintaining aggressive monetary policies to fight Europe's mounting deflationary pressures and to ensure that Japan is out of the woods on deflation. To ward off any regression, the Bank of Japan will likely accelerate its quantitative easing program over the summer, according to Koesterich. Meanwhile, the ECB may loosen policy further.

Furthermore, the Fed itself will keep easy money flowing into the economy by anchoring short-term rates at zero throughout 2014, even if its sticks to a cutback pace of $10 billion per meeting to conclude the stimulus by year end, absent any dramatic slowdown or market shock.

Must Read: 3 Credit Cards to Travel With in 2014

"Monetary conditions will remain very loose," said Koesterich during his Tuesday phone interview with TheStreet.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.31 0.00%
FB $92.80 0.00%
GOOG $645.44 0.00%
YHOO $30.96 0.00%
TSLA $241.46 0.00%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs