Investment Commentary – February 11th, 2015
Dow – 17,868.76 (2/10/15 close)
S&P 500 – 2,068.59 (2/10/15 close)
10 year Treasury – 1.99% (2/10/15 close)
- S&P 500 volatility has remained elevated in the first 6 weeks of 2015 as investors react to uncertainty around the Fed, major oil price swings and disappointing S&P 500 earnings. Interestingly, volatility has not been isolated to the equity market, with all major asset classes, aside from Gold, having reached 1 year highs in volatility.
- The U.S. economy seems to have achieved sustainable growth, despite global economic weakness. Corporations are generating profits, unemployment is grinding lower, consumer debt levels are falling, tax revenues are growing, and inflation, interest rates, and corporate default rates remain relatively low.
- Analysts still anticipate 2015 to be another good year for U.S. equities. They think corporate America will see 4% revenue growth plus 6% earnings growth which should lead to a 10% total return for the market.
- Analysts believe the U.S. economy is the most attractive globally. In their view, the prospect for rising domestic consumption combined with reasonable valuations and a lack of favorable alternatives makes U.S. exposed stocks preferred.
- Analysts like Technology, Healthcare, Industrials, and MLPs.
The views presented are not intended to be relied on as a forecast, research or investment adviceand are the opinions of the sources cited and are subject to change based on subsequent developments. They are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.
Disclosures:
https://www.ivyfunds.com/perspectives/focus-us-equities-low-growth-world
https://www.jpmorganfunds.com/insights
