Bank of America analysts see stocks outperforming bonds again in 2015 for the third consecutive year.
Year-to-date in 2014, the S&P 500 has gained 14.4 percent, while the Bank of America US Broad Bond Index has returned 5.6 percent.
Analysts see this trend continuing in 2015, although the projected gap in performance is not as wide. Analysts predict an 8 percent return in the S&P 500 in 2015, but do not offer predictions for the bond index.
GDP Predictions
Bank of America economists are forecasting worldwide GDP growth of 3.7 percent in 2015, and analysts believe that this growth coupled with attractive fundamentals make stocks a good investment choice.
The report projects that S&P 500 stocks will grow earnings by 5 percent in 2015.
Bond Predictions
Bank of America’s bond specialists predict more modest returns in 2015. Analysts predict a 2.75 percent yield on 10-year Treasury bonds by the end of next year, and a 2.0 percent return for high-yield corporate bonds.
Analysts’ Advice
Based on their projections, Bank of America analysts advise investors to consider “large cap stocks of industry leaders that have sustainable and growing dividends.”
Many stocks can fit this description, but investors that have missed out on this year’s 11 percent gain in stocks can certainly look for companies…
Read the rest of this article (and all my other articles) for free on Benzinga by clicking here
Want to learn more about the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
