2014 is expected to be a good year for the markets, at least according to the analysts. Corporate profits are expected to go up, and markets are cheering since the tapering had started slowly and not as bad as expected. Economics are humming along, which should be good for equities.

Personally, I think one should be prepared for volatility in the markets for the year ahead. Your portfolio must be able to withstand market correction and also take opportunities to re-invest back into the markets when valuation is attractive. Remember to protect your downside first and the upside will take care of itself. My strategy for investing in 2014 are:

1. Look for deep value stocks. As markets recover, one might be tempted to chase for high growth stocks since the stories will be rosy. Growth is also expected to be priced in for these stocks and one must be ......