In this market forecast, Atlantic Trust discusses presents the issues that will have the most impact on the financial markets over the next 12 months, including:
- U.S. is posting impressive growth as the expansion broadens.
- Many other countries are struggling with too little growth, too much inflation or both.
- The collapse in oil prices is creating winners and losers (but mostly winners).
- Divergence in economic growth is creating a divergence in global monetary policy.
- Strong consensus on path for Fed policy—risk rises if they deviate from that path.
- Treasury market is supported by strong U.S. $ and attractive yields vs. other sovereigns.
- Munis are at earlier stage of credit cycle than corporates—more upside.
- U.S. equity bull market—a slower pace likely in 2015.
- Key questions for corporate profits—impact of strong $, slower demand from abroad?