It’s going to be a great year for stocks, say analysts

RELATED QUOTES

SymbolPriceChange
BHP.AX38.31+0.110
FLT.AX54.245-0.115
JBH.AX20.46-0.180
MFG.AX13.10+0.150

Many analysts are releasing bullish estimates for fiscal 2014 — and even the nearer term.

Per The Australian Financial Review, “While the more bullish forecasts have the Australian benchmark S&P/ASX 200 climbing about 20 per cent higher by June 30 next year… Other experts, who prefer calendar year-end forecasts have the market rising as much as 15 per cent this year.”

Following up a big 2013

This would come on the heels of a relatively extraordinary 2013, no matter the recent market jitters. Inclusive of dividends, the S&P/ASX 200 index (^AXJO) (XJO.AX) gained nearly 23% in fiscal 2013, well above the average annual market return.

Of course, for some individual stocks, the year was even better. Some of 2013’s biggest successes include fund manager Magellian Financial Group (MFG.AX) and travel agency Flight Centre (FLT.AX), as well as JB Hi-Fi (JBH.AX).

Positive signs for 2014

Looking forward to the coming year, positive signs include the continuing U.S. economic recovery and, to an extent, the falling Australian dollar which in general benefits resources companies such as BHP Billiton (BHP.AX). The mining giant has said that for every one cent fall in the AUD to the USD, the company sees $100 million in additional net profits after tax.

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Motley Fool contributor Catherine Baab-Muguira does not own shares in any company mentioned in this article.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9294+0.0007+0.08%
    AUDUSD=X
    0.5537+0.0002+0.04%
    AUDGBP=X
    0.6724+0.0003+0.04%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg