Highlights We expect the policy environment in 2015 to be supportive for stocks. The transfer of power to Republicans may have a meaningful impact on broad policy measures. Regardless of the political party in power, the year before the presidential election has historically been a good one for stocks. Favorable Policy Environment for Stocks in…

Highlights: We believe stocks will deliver mid- to high-single-digit returns in 2015. We expect earnings, and not valuations, to do the heavy lifting in producing potential stock market gains for investors in 2015. Monetary policy is in transit in 2015, when stocks will face a shift from the very loose monetary policy of the Federal…

Highlights We believe emerging markets (EM) fundamental conditions are set for improvement in 2015, based on our outlooks for economic growth, earnings, and policy. Valuations are compelling and EM may be situated to recapture some of their relative losses from a technical perspective, particularly in Asian markets. However, somewhat mixed fundamental and technical pictures suggest…

Highlights While the certainty provided by an election outcome has been positive for the stock market over time, our positive stock market outlook is based much more so on fundamentals. It does not get more fundamental than earnings, which are on track to grow by 10% year over year for the second straight quarter. Earnings…

Highlights It is important to recognize that the S&P 500 is not GDP. S&P 500 companies have different drivers for earnings than the components that drive GDP. The backdrop of solid business spending within a slower trajectory of overall GDP growth can be a favorable one for the stock market. Although stocks are at the…

Highlights We remain confident in corporate America’s ability to generate solid earnings growth in the current global economic environment despite the slowdown in Europe (and to a lesser extent, China). A number of U.S. companies have performed relatively well in Europe, with some not yet seeing signs of a slowdown in their business. The business…