SOURCE: Russell Investments

Russell Investments

December 12, 2014 09:21 ET

U.S. Sets the Tone: U.S. Stocks Positive, With Russell 1000® Index Outperforming Russell 2000® Index by a Wide Margin Year-to-Date as of December 8. Russell Markets Strategists Watch U.S. Economic Data for Clues on Fed Policy

SEATTLE, WA--(Marketwired - Dec 12, 2014) - As the global equity markets race to the finish line for 2014, the U.S. continues to lead global equity markets year-to-date as of December 8, with U.S. large cap stocks outperforming U.S. small cap stocks by nearly 12%. The U.S. large-cap Russell 1000® Index has returned 13.1% year-to-date as of December 8, while the U.S. small-cap Russell 2000® Index returned 1.5% for the same time period.

Doug Gordon -
Senior Portfolio Manager for Tactical Asset Allocation Strategies, Russell Investments
"We believe the U.S. will continue to set the tone for global equities as we enter 2015. And, while U.S. large cap stocks likely may continue to modestly outperform U.S. small cap stocks next year, we expect the Russell 1000® Index to grow in the mid-single digits. Our expectation is that the U.S. Fed will likely start to tighten interest rates near the end of the second quarter, while central banks outside the U.S. such as the European Central Bank and Bank of Japan may continue to move in the opposite direction. As the year progresses, we'll keep a close eye on economic data such as employment, wage inflation and fourth quarter earnings for clues on U.S. monetary policy direction as we expect a data driven Fed will be tracking those numbers closely."

To hear more from Doug Gordon and Russell Investments team of global strategists on the outlook for 2015, look for the new Russell Investments 2015 Global Market Outlook on Russell's website next week. In the meantime, you can access the most recent fourth quarter update on the Russell Investments website.

Russell Index YTD 2014 a/o 12/8
Russell 1000® Index 13.1%
Russell 1000® Growth Index 13.1%
Russell 1000® Value Index 13.1%
Russell 2000® Index 1.5%
Russell 2000® Growth Index 2.0%
Russell 2000® Value Index 1.0%

Source: Russell Investments. Total returns, US dollar denominated.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.

The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market.

Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Russell Investments is the owner of the trademarks, service marks and copyrights related to its respective indexes.

Opinions expressed by Mr. Gordon reflect market performance as of December 8, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Copyright © Russell Investments 2014. All rights reserved.

Russell Investments is a trade name and registered trademark of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide.