In his latest Weekly Kickstart note, US equity strategist David Kostin lays out 4 big ideas for beating the market in 2014.
First off, however, he notes that his year-end forecast for the year is 1900 on the S&P, so a gain, although not nearly as big as this year.
We summarize his four big ideas:
- Growth will outperform value. Higher interest rates and slowing earnings will put a real premium on companies that are still growing rapidly.
- Companies that will benefit from an increase in investment spending. 2014 is likely to be a stronger year for CAPEX.
- Companies doing large buybacks will outperform.
- Companies with high operating leverage will outperform. As the economy improves, companies with high fix costs will do better.
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