Barron's predicts growth in US equity 10% next year. Leaders of growth will be technology companies - based on AMarkets.
A strong dollar, falling commodity prices and the global economic slowdown will keep the proceeds of growth companies - according to the strategists of Barron's. Respondents expressed a bearish view on the segment utilitiz, metals and mayningovye company. The most favorite sector - technology and finance. Shares slipped this month amid sell commodities, reduce expectations for global GDP growth and the resumption of growth expectations for deflation. The index of wide market Standard & Poor's 500 dipped 3.8% last week.
According to the expert Goldman Sachs, David Kostin, the market underestimates the increase in rates, which in any case will take place in 2016 if the 2015 will not take place. Kostin predicts the Fed will raise rates four times in the next year. Those. Overnight interbank lending rates increased in total, according to the forecast, up to 1.25-1.5%. Higher interest rates and slower economic growth will block the increase in corporate profits.Favorite Kostina shares for 2016 - Visa Inc. and Alphabet Inc.
Strong dollar - the biggest risk to the market in 2016 - says another expert from JPMorgan Chase & Co., told Barron's. 5-6% retracement change in the weighted average cost of USD - that's roughly a 3% change for the profits of the companies in the segment next 12 months.