Analysis: After market surge, investors switch focus to unloved stocks

With the U.S. stock market on pace to end the year with a gain of almost 30 percent, including dividend payouts, fund managers are finding themselves searching for stocks that have been largely ignored as they head into 2014. “It’s getting tough to find anything out there worth investing in when everything looks expensive,” said William Mann, a co-manager of the $353 million Motley Fool Independence Fund. The Federal Reserve said on Wednesday it will cut its monthly bond-buying stimulus in January by $10 billion to $75 billion, reducing the influx of easy money that has helped push stocks broadly higher. While the announcement has actually only helped stocks thus far, strategists say that further reduction in the central bank’s stimulus could push bond yields higher.

    

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