Bullish on stocks, munis for 2014: Pro
There's plenty of cash yet to move into equities, making the stock market's prospects bright for 2014, Suni Harford of Citigroup said Thursday.
"We still have $9 trillion in household cash. I think a lot of it needs to be put to work," she said. "We've got a lot of our funds, are still sitting on cash. Eight, 9 percent of funds are telling us that they've got cash on the books. So, I think there's more of a technical play on equities. People haven't gotten in yet, especially ahead of January, which is going to be a very telling month."
Harford, who oversees Citigroup's North American sales, trading and business origination of premium securities, was voted as one of the 25 most powerful women in finance by American Banker Magazine this year.
(Read more: Dennis Gartman doubles down on bond shorts)
On CNBC's "Halftime Report," Harford said that munis were her top play for 2014.
"I like municipal bonds, which is a controversial call, I'm sure. It's had a very difficult year," she said. "I think a lot of it is overblown because of the headline risk that's out there. I think Detroit and Puerto Rico and Jefferson County (Ala.) get a lot of play, but I think we have historically seen a big bounce-back after a market like that in municipals, so we're watching that one."
Harford maintained that she was bullish on equity markets "pretty much everywhere."
"We're shy on emerging markets," Harford said, adding that a recovery could come in 2015, and that she was not bullish on commodities.
(Read more: No need to worry about tapering in 2014: Adam Parker)
Harford also said that the "great rotation" out of fixed income into equities has been overstated, calling it "more of a deceleration."
"I'm not sure the 'great rotation' exists. Most of the people have thought of it historically as a credit markets to equity markets. They're very similar, money-rate driven," she said. "Actually, inflows in credit markets are up year-to-date, not as much as equities are, certainly."