By Bret Jensen:
Monday will be the last trading day of the first quarter of 2014. So far the year has not worked out the way most pundits have predicted. Interest rates have fallen from the 3% level they began the year at for 10 year treasury bonds. The market is pretty much where equities started the year; albeit with increasing volatility.
High yield stocks and sectors like real estate investment trusts (REITs) have generally been strong performers in 2014. This reverses some of their underperformance in 2013. I think this continues for most if not all the rest of the year. I don't see interest rates spiking as it is hard to see the 3% GDP growth some economists predicted at the beginning of the year with the current anemic job growth and with the Federal Reserve slowly reducing their liquidity support measures.
I will continue to be over allocated to the
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