"I fear people, who sat out 2013, will jump in too fast next year and get burned," said Richard Madigan, chief investment officer for JPMorgan Private Bank.
said that under normal circumstances he
would advise investors to hold bonds that mature in an average of about five years.
This measure is referred to as a bond's "duration."
For 2014, Madigan
is advising investors to restructure their portfolio to have an average duration of two to two-and-a-half years.
"Long duration bonds are much more a riskier asset than a safe asset next year," Madigan
"The big debate among my team is whether international markets will play catch-up next year," said Madigan of JPMorgan Private Bank.