U.S. Equity Update - Domestic Stock Market

  December 28, 2015

With the earnings season complete now, equity markets are likely to be driven by macro economic factors through the beginning of 2016.

Equity analysts and economists are shifting their attention to consumer behavior and economic conditions. The Fed’s focus on a rate rise has been in response to strengthening economic data. The financial sector was the best performing sector in November, outperforming all other sectors. Financials rose in anticipation of a rate hike by the Fed, which is expected to widen net interest margins for banks. Volatility throughout the year has led to a sideways direction for the equity markets, creating a difficult environment for long-term growth investors. Short term traders have taken advantage of the volatility and market dislocations.

 

Sources: S&P, Moody’s, Bloomberg

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