Bloomberg's 2013 End Of Year Summary & 2014 Predictions

Investors don't need to be reminded that 2013 was a great year for equities.

But how great was it really?

These are some facts that solidify 2013 as one of the best bull market years in some time.

Looking Back Through 2013The S&P 500

Index rose approximately 29 percent in 2013 beating government debt by 32 percentage points, the widest spread since 1978, according to Bloomberg.

Exchange-traded and mutual funds took in about $162 billion, the highest figure since 2000.

The total valuation of all 500 companies that compose the S&P 500 index are worth approximately $3.7 trillion more today compared to a year ago.

See also: Five Ways To Reboot Your Trading In 2014

Profits for these 500 companies climbed to more than $100 a share in 2013 compared to about $60 a share in 2008.

Many factors have contributed to 2013's bull run. Zero-percent interest rates, a continuation of the Fed's economic stimulation plan. Investors also developed a strong sentiment that equities are “safe” again following the recession lows which wiped out $11 trillion in total U.S. market value.

Looking forward to 2014

As 2013 comes to an end investors are likely to question what 2014 has in store.
“The equity culture is not dead,” Bank of America's chief market strategist Joseph Quinlan said. “We kind of lost sight of the fact that equities still provide long-term good returns.”

According to Bloomberg estimates, S&P 500 companies are forecasted to increase their profits 9.7 percent next year, almost twice the growth rate of 2013.

2014 GDP is also expected to outperform the 2013 numbers. According to a Bloomberg survey of 78 economists, the economy is expected to expand 2.6 percent in the coming year, up from 1.7 percent in 2013.

2014 will likely see the Fed completely ending its monthly bond-purchasing program.

According to a Bloomberg survey, the Fed will likely reduce its monthly purchases by $10 billion in each of its next seven meetings before completely ending the program in December 2014.