- Falling energy prices may be cause for volatility but historically has limited negative correlation to broad equity prices.
- There is a very strong correlation of broadly falling commodity prices and the strengthening of the U.S. Dollar.
- A combination of factors such as lower energy prices, strengthening U.S. Dollar and continued inflation in an expected rising interest rate environment should help propel the U.S. market to outperform.
It’s the beginning of 2015 and investors are speculating on what market will be the best performing for the year. China’s immense growth over the past decade has finally begun to wane and other major markets like Japan and Europe are signaling difficulties as well. Emerging markets are always a popular place to seek out exceptional growth, but the BRIC countries may not offer the kind of strength investors are looking for. Ironically, investors may not have to widen their search at all to find the best performing market for 2015 – the United States…
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