Investors can pile back into equities and credit asset classes as the economy thaws out in 2014, according to UBS.

Alexander S Friedman, the chief investment officer at UBS Wealth Management, said the outlook was positive thanks to economic growth and helpful monetary policy.

Friedman said his recommended strategy for 2014 would feature "increased weighting in credit, including highyield bonds and emerging market sovereign bonds, and a sizeable allocation to hedge funds."

With the prospect of economic growth returning, which Friedman predicts will rise to 3.4%, bond yields that have been historically low should start to behave normally.

"The beginning of the end of quantitative easing will bring about rising bond yields, undoubtedly affecting the returns available in high-rated developed world bonds.

"We believe credit should play a more integral role in investors' strategic allocations than may have been assumed in recent years," said Friedman.

Commodities in general are likely to suffer from softer demand and mildly negative returns in 2014 and further down the line.

"White gold, for example, has merits as long-term 'insurance' against extreme risks such as hyperinflation," he said.