U.S. Equities Will Rise Another 4%: Wood

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March 21 (Bloomberg) –- Russell Investments' Stephen Wood discusses the outlook for U.S. stocks and his investment strategy with Julie Hyman on Bloomberg Television's "Street Smart." (Source: Bloomberg)

With a rally.

We saw a little of a derailment when janet yellen and dictated that rates would rise more quickly than people were thinking.

Obviously you don't think that will derail the longer-term rally we are seeing.

We think it's another 4% plus or minus four u.s. equities from here.

Janet yellen is a very bright, capable person but the implication of language is something she did not accept -- expect in that environment.

I would look at it being imprecise language more than it being a fundamental shift in the fed policy.

The taper, which will be winding down are completed by the end of this year, makes sense and they will wait to see how the market digests that.

By third-quarter-ish in 2015, they will discuss whether or not raising that will be appropriate.

With that said, it will be a better part of a decade at or close to zero.

A low interest rate environment is will be a good welcome.

It makes sense you will have a volatile environment to figure what to make of the prospect of rising rates.

Rising is the sign of a healthy economy.

In that environment, you're looking at sort of growth.

Where will we see the growth?

Where will we see companies benefiting from the growing economy?

Walked me for health care.

It has been one of the best-performing groups last year.

What will be the next leg up for health care here?

We have a better understanding of who the winners and losers are.

Regardless of your politics and currently -- proclivities for the affordable care act, the horizon for these companies became a lot more clear.

When we worked through the volatility it's providing new pricing opportunities right now for an medium-term portfolio.

Health care has been consistently towards the upper end of the portfolio.

Managers are consistently looking in the more medium-term and we think united states could provide some more stable earnings expectations.

No concern in terms of the underlying oil growth given concerns about china, for example?

A lot of that has been shaped through.

China is moving from its growth at any cost model and had before to a more consumer base which implies more as a 7% growth rate.

A lot of the emerging market volatility we've seen but also areas like australia, canada, resource-based economies where you have the ill liquid market in china they will plan those developed markets.

We've seen a lot of the prices rolled in.

Steve, good to see you.

Have an awesome weekend.

This text has been automatically generated. It may not be 100% accurate.

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