Which markets will shine and which will disappoint in the year ahead? Jurrien Timmer, director of Global Macro at Fidelity Investments in Boston, suggests five key themes for 2015:
- U.S. stocks could once again outperform global markets, especially in view of strong earnings expectations.
- Bouts of volatility are likely as the Fed weighs the future path of interest rates.
- Evidence continues to point to a modest but steady mid-cycle expansion in the U.S. that could continue for several years.
- The European Central Bank’s efforts to control deflation will likely play a significant role in the direction of Europe’s equity markets.
- Unless China’s recent problems abate, emerging-market stocks could struggle to end a four-year streak of underperformance.
Read more here.