wall street ponders next year after big gains in 2014
Last Updated : GMT 16:34:21
Arab Today, arab today
Arab Today, arab today

Wall Street ponders next year after big gains in 2014

Arab Today, arab today

Arab Today, arab today Wall Street ponders next year after big gains in 2014

Wall Street
New York - AFP

Wall Street Wednesday toasted another banner year, with US equity markets finishing near all-time highs following a steady stream of improving economic data and investor-friendly monetary policy.
In 2014, the broad-based S&P 500 gained 210.54 points (11.39 percent) to 2,058.90, easily outpacing forecasts that the index would gain only about six percent for the year.
The Dow Jones Industrial Average rose 1,246.41 (7.52 percent) to 17,823.07, while the tech-rich Nasdaq Composite Index climbed 559.46 (13.40 percent) to 4,736.05
All three indices dropped in the final session of the year in lightly traded volumes.
With the gains from 2014, the Dow has now risen six years in a row and the S&P 500 has lodged three successive years of double-digit gains, which is unusual, though not unprecedented. That has raised questions about whether the market can go much higher.
Lee Munson of investment firm Portfolio Wealth Advisors said the rally is "long in the tooth," but still expects it to continue due to the comparative strength of the US economy with the rest of the world.
"You have to put your emotions aside and look at the facts," Munson said. "The facts are we're still expanding."
Key worries for US investors in 2015 include weak growth in Europe and emerging economies, the hit from sharply lower oil prices to Russia and other petroleum exporters, and the blow from an eventual hike in US interest rates.
- Buying the dip -
While trending higher throughout the year, US stocks experienced intermittent fits of weakness in 2014.
These included a mid-winter swoon amid frigid weather that depressed economic activity; an April pullback on worries that technology stocks were a bubble about to burst; an October slump on global growth fears; and most recently a December retreat due to low oil prices and the plunging Russian ruble.
However, in each of these cases, investors stepped in to buy the dip, ultimately pushing markets higher.
The most recent rally was fueled by the Fed's December 17 pledge that it would be "patient" before raising interest rates, which was quickly followed by a government report showing third-quarter US economic growth came in at a staggering annual pace of five percent.
The back-to-back developments lifted the Dow above 18,000 for the first time and pushed the S&P 500 closer than ever to 2,100.
Standout sectors that rose more than 18 percent in the S&P 500 were health care, which was propelled by elevated spending under the new health care program dubbed Obamacare and a stream of mergers; technology, thanks to strong performances from companies like Facebook and Intel, which led the Dow; and utilities, which drew investors who sought dividend payouts at a time when interest rates remained low.
The weakest sector by far was energy, which fell about 10 percent, as oil prices dropped nearly 50 percent from last year.
Some analysts think retail-sector stocks could have more upside in 2015 as investors take advantage of low gasoline prices and increase their spending.
Consumer discretionary stocks in the S&P 500 underperformed the overall index in 2014.
"People are still concerned about what they're spending," said Howard Silverblatt, an analyst at S&P Dow Jones Indices.
- A dangerous rise? -
Despite the heady gains of the last couple of years, many analysts believe the US stock market still has significant running room in 2015.
Wells Fargo Advisors strategist Gary Thayer predicted more volatility, but noted that US stocks typically decline when the dollar is weak and inflation is high.
"These conditions do not exist today," Thayer said. "We continue to advise investors to be positive, not defensive, because we do not see the conditions that historically have been negative for stocks."
Munson of Portfolio also sees US stocks gaining, albeit at a more modest pace. He is eyeing the S&P 500 at 2,200, in part because he does not anticipate the Fed to significantly hike rates anytime soon.
Jack Ablin, chief investment officer at BMO Private Bank, agreed that US stocks could rise further in 2015 due to continued central bank easing, but cast such a rise in a cautious light.
Ablin warned that the combination of sharply lower oil prices, a higher dollar and weak overseas growth could plant the seeds for a big correction as was the case after similar conditions in the late 1990s sparked an eventual correction when the technology bubble burst.
"The market could continue to surprise to the upside, but at the same time get more and more dangerous from a valuation standpoint," he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

wall street ponders next year after big gains in 2014 wall street ponders next year after big gains in 2014

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

wall street ponders next year after big gains in 2014 wall street ponders next year after big gains in 2014

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Online exhibit shows hidden depths of

GMT 11:45 2017 Thursday ,23 November

Online exhibit shows hidden depths of
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday