U.S. stocks had a solid 2014, rising 14% through November last year, notes Jurrien Timmer, director of Global Macro at Fidelity.
But will this trend continue in 2015? It’s possible, he says. Timmer outlines five key items to pay attention to this year in a report.
1. U.S. stocks could outperform global markets once again, especially considering the strong earnings expectations for 2015.
2. Bouts of volatility are likely as the Federal Reserve weighs the future path of interest rates.
3. Evidence continues to point to a modest, but steady mid-cycle expansion in the the U.S. that could continue for several years.
4. The ECB’s efforts to control deflation will likely play a significant role in the direction of Europe’s equity markets.
5. Unless China’s recent problems abate, emerging-market stocks could struggle to end a four-year streak of underperformance.