Already low Treasury yields will most likely not fall much further, says Kathy Jones, fixed income strategist at Charles Schwab. Likewise, muni bonds are also fairly valued.
Municipal bonds are bouncing back after the Fed's "taper talk" spurred a selloff in 2013. Surprised investors should stick with the asset class in 2014 for yield, safety and diversification.
Short-term rates are likely to stay low for another two years, and even when short-term rates start to rise, bonds will probably not “get killed" because yield curves will flatten.
Jim Colby of Van Eck Global says investors are best off diversifying their municipal bond portfolios instead of buying individual Puerto Rico bonds for their high yields.
Municipalities that simply match their revenues with their expenses do not get into fiscal trouble, says Richard Ravitch, author of "So Much To Do".
Municipal bonds have rebounded smartly in 2014 after selling off last year. Roberto Roffo, portfolio manager for Advisors Asset Management, expects the bull market to continue.
The steepness of the yield curve is rewarding investors for upping their interest rate risk, says Nick Venditti, associate portfolio manager for Thornburg municipal bond portfolios.
Bonds may be the best way to play emerging markets right now, according to TCW's David Robbins.
Investors should be cautious on stocks in the near term but positive in the long run, says Darell Krasnoff, Managing Director at Bel Air Investment Advisors.
The U.S. dollar will appreciate in 2014 as U.S. energy and manufacturing trends continue to improve, says Bob Doll, Chief Equity Strategist for Nuveen. That's one of his ten predictions for 2014.