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Look for S&P to rally 6 percent in '16

Monday, March 14, 2016 - 03:12

Investors may hate this current rally, but Nicholas Colas of Convergex believes U.S. stocks could rise as much as 6 percent this year.

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Stocks flat coming back for morning sell off despite a drop in oil prices. When has to discuss the market's moves Nicklaus policies chief market threats and efforts won't back next day isn't so sharp drop in oil today. Hurting stocks more you know we've seen over the past week or stocks and oil decoupling just a little bit. Where there was a one to one relationship for much of this year between those two assets. Now begun to break apart just the most we can get days oil as a tool bit. As stocks or download or vice Versa. It is as good things for it absolutely is for a couple of reasons the first is going to be better have stopped treating human rights costs but additionally. Map shows the core relations among different sectors recipe is also declined to very positive sign both diversification. For those picks stocks actively gives us more room actually outperform. Us actresses which that are the most important ones would be. Energy which is decoupling or dramatically which is good and healthy a but also even financials and I don't perpetually been lagging the market. It's fine decoupling from energy and decoupling from the market overall so those of the two most important ones focus so those sort of positive results as you see it but why is it that investors just don't like this round using. Gold. Around for awhile the Treasury's ten years still trading below 2%. You'll write this well this might be the most hated rally this entire movement 2009 lows I think it comes against a bright tropical lot more worried. But only fed policy but the direction of the US economy there's a lot of naysayers out there that are very concerned. If all the fault the energy as you mentioned Cole. Which is it safe haven kind of assets had a tremendous year while performing equities bonds or anything else. So we're Casey the market going and navigate Maltese we're from here excellent. Yes we think that the rally still has some room to run for only because there are so many naysayers. The general tenor from the Fed meeting this week for example should be about a best of US economic growth picture for the balance of the year it will be counts against some language about when the rates might go up. But on average right now there's still some skepticism we're pretty optimistic for vineyard and it's not just the US we had your move earlier that the ECB. You have to deal we meeting this week and the BOJ Bank of Japan means well. Com. Jim the global backdrop he said you see you stocks as a short term rally is is within a bear market or do you think this is. Good for now. That is such a view that is six for our question we hear from clients all the time. It's very hard to know where overall modestly constructive and equities and we can get. Five or 6% return overall for this year for 7% return from these levels. But it'll be with a lot more volatility because the US is essentially Friday August central banks around the world talking about cutting rates in Europe. Japan even China we're talking about raising ours. That creates the volatility and sort constructive but against the are a lot which in this okay constructive lives it's exactly excellent. Are they threatening calls of convergence I'm Fred Katayama this is.

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Look for S&P to rally 6 percent in '16

Monday, March 14, 2016 - 03:12