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Market Outlook - December 2014

| December 31, 2014
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As the books close on 2014, we are excited about opportunities in the financial markets that 2015 will bring.  In our opinion it will be a year of many transitions.  Already, we are seeing sweeping changes in global monetary policy, especially with the recent steep drop in oil prices. The congressional elections have shifted the political balance in Washington DC, which we are hopeful could potentially break the gridlock in Congress that unfortunately has become the new normal. As the labor market in the United States continues to recover and strengthen, we feel it will directly affect overall Gross Domestic Product (GDP) and longer more broad based growth at all levels of the economy. The Federal Reserve, as it winded down its quantitative easing program at the end of 2014, may look to raise interest rates for the first time in nine years.

Overall our long term outlook for 2015 is an optimistic one.  As we enter into the second half of the current business cycle, we feel consumer spending, business spending, and an improving housing and labor market will all do their part in keeping the economy moving forward.  Having said this, time in the market is still a critical factor in our overall approach. Like we have been stating all year, we still believe strongly in large capitalized dividend paying companies and see them as a potential long-term opportunity for our clients.  As the Federal Reserve continues to assess the interest rate environment, we will keep a watchful eye on the bond market.  For a more detailed market outlook for 2015 please click on the link below.

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. Stock investing involves risk including loss of principal. The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.

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