Thursday, December 31, 2015

Markets 2016: Wine and roses? Or stress and strain?


Liên Khúc Nhạc Xuân 2016 - Nhạc Tết 2016 Chọn Lọc Hay Nhất|| Chào Xuân Bính Thân 2016

But Gibbs also said she expects at about 7 percent earnings growth on the S&P 500 in 2016 as the market approaches valuations near the top of a two-year range.

John Stoltzfus, managing director and chief market strategist at Oppenheimer & Co., added that an improvement next year would be consistent with historical trends. But he had a rosier view of the energy sector.

"We do think the energy patch is likely to improve somewhat," Stoltzfus said on "Squawk on the Street." "We think we"re over these down 65 percent in earnings per quarter that we"ve seen. We think the bottom probably was reached at around $34. That seems to be a marker for the price of oil, where people go, "My G*d, 34 bucks, this is too cheap." And that"s when they come back in to buy."

If volatility is likely to continue into 2016, so is the opportunity that comes along with it, said Paul Christopher, head global market strategist at Wells Fargo Investment Institute. He"s especially looking for improvement in consumer discretionary, industrials and information technology sectors as the economy settles into what he sees as a "firmer path."

"There"s been so much negative sentiment, so much pessimism, that there might even be room here for a little bit of multiple expansion as well," Christopher said on "Squawk on the Street." "So we"re still looking for the S&P to finish next year 2,230 to 2,330, in that range. ... A decent year we"re looking for in the S&P next year, consistent with a steady, solid, but unspectacular year in the economy."

Read More2015: One great year for drivers at the pump

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Source: http://www.cnbc.com/2015/12/31/market-2016-outlook-wine-and-roses-or-stress-and-strain.html

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