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Opinion: You really do not want to throw away the shares at the moment …

Nowadays it seems that the shares can move decisively to higher levels. Here are nine reasons why, despite fluctuations in January, the market will continue to grow in 2015 .:

 

1. The labor market is strong: It is difficult to start with bullish list, nothing but details of the report in January on jobs. Investors need to know the facts now – 257,000 jobs created with the fastest pace of hiring since 1997. Moreover, wage growth has accelerated. Who says that the recovery is losing money?

 

2. Corporate profits are stable: Despite fears of disaster revenues for the fourth quarter 2014 FactSet announced last week that 78% of S & P 500 companies reporting earnings far exceeded the average forecast for earnings.

 

3. Short positions are not profitable: Even though it became quite fashionable to make short bets as the market became choppy in January, short positions recently hit under the chin.
4. Cheap energy is still cut investment: An economist estimated in December that cheap gas prices could add as much as 0.50 percent to GDP growth, and Citigroup previously estimated that low prices may have juice of the global economy over $ 1 trillion. Given that oil prices are even lower than at the time of these forecasts, investors should be confident that the incentive of cheap energy prices will have a real impact in 2015.

 

5. The apartments have a solid basis: housing starts was the highest level in seven years; strong sentiment Association of Home Builders and long-term gains for prices in major housing markets in the US, even if the pace of growth has slowed.

 

6. Banks are in good shape: FDIC records show that in 2010 US 161 close insolvent banks who could not hack it after the financial crisis and the Great Recession.

 

7. Consumers are confident: Conference Board, reported its best ranking for consumer confidence since 2007.

 

8. Interest rates will remain low for longer: the Federal Reserve may raise interest rates earlier than announced, the possibility of an increase in speed is far from certain.
Remember that a mandate of the Fed is to stimulate employment, but on the other hand is to fight growing.

 

9. Several alternatives to US stocks: Based on approbated facts again does not show that the US economy will work and US corporations will grow well, consider the alternatives. Chinese exports just took a massive twist down in January, while Europe remains tense amid uncertainty as to how anti-austerity government of Greece will affect the policies of the euro area. While the low prices punished earning assets and while global investment look only drawn a sketch, where else can investors look?


 Varchev Traders


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