Investment Concept: The Chasm Between Stock Market And Bear In 2015

Dave Rosenberg, chief economist of Canadian Fortune Management Inc Gluskin Sheff (Dave Rosenberg), told clients in a report on Monday (December 29th) that he believes that the stock market will not fall into a bear market in 2015. In addition, he gave his 13 investment ideas.

Rosenberg said in his report: "the US economy does not seem to need to rely on the real estate market or export sector, especially in all other fields, and has been pushing for economic growth to record its best performance in 11 years. After a terrible economic recession, deflation panic, terrorist attacks, war and unemployment recovery, 2003 was a breakthrough year.

The following is Rosenberg's 13 investment philosophy:

American technology stocks are attractive because they are relatively cheap and share a healthy balance sheet, and strong domestic demand also benefits them.

Non essential consumer products will benefit from the growing job market, falling oil prices and a strong dollar. A stronger US dollar makes import prices lower.

Canada Bank The stock has a dividend yield of 4%, and its valuation is good, even though they are struggling to find new sources of growth.

Euro zone financial stocks have experienced a difficult 2014, but the upward trend in the future is greater than the downside potential. Such stocks are cheap, some of which have less than 10 times earnings.

The European stock dividend yield is generally 3.7%, which is higher than that of Germany's 10 year treasury bond which has fallen below 0.60%.

　　☆ High market value Export enterprises will benefit from strong US economic growth. The US economy is expected to grow at 3%.

Energy stocks or rebounded after a dismal year, reappearing the trend of history. The annual performance of energy sector is quite different from that of other sectors. In addition, oil has been oversold.

High quality corporate bonds and emerging market junk debt are better investment opportunities than US Treasuries.

When investors sold energy corporate bonds this year, US Non investment grade bonds fell. The average yield of such bonds rose to 6.62%, similar to that in 2015.

Japan equity market It will benefit from low inflation, because low inflation will prompt the BoJ to step up its stimulus.

Individual emerging markets are worth considering. India and Mexico, which have already implemented economic reforms, are attractive, while other countries such as Columbia and South Africa are facing the current account deficit risk.

Commodities importing countries such as Korea and Poland will benefit from a sharp drop in oil prices.

China's stock market has gained a bumper harvest this year, despite the economic slowdown. China's central bank loosened the loan to deposit ratio rule and pushed the Shanghai Composite Index to a record high. Monetary easing policy should continue to support the stock market.