32 Reasons Stocks Will Jump This Year

9. The 10-year yield will average 4.75% for the year as economic growth comes in around average levels, inflation decelerates further, the U.S. dollar remains stable to higher and international investors' demand for U.S. Treasuries remains strong.

10. The Federal Reserve will leave the fed funds target rate at 5.25% while making both hawkish and dovish comments throughout the year, depending on current market perceptions. I don't believe a move is coming, but I do believe a cut is more likely than a hike.

11. The U.S. dollar index will remain stable to higher. I see it trading in a range of 80.0 to 93.0 as the U.S. budget deficit continues to improve, U.S. economic growth improves relative to global economic growth, cracks in the euro develop and international demand for U.S. assets rises.

12. The U.S. budget deficit, which is currently 1.5% of GDP, well below the 40-year average of 2.3% of GDP, will continue to trend lower as healthy economic activity continues to boost tax receipts substantially more than estimates.

13. Corporate spending will rise more than expected. Companies flush with cash will gain confidence in the sustainability of the current expansion and spend on productivity-enhancing technologies.

14. S&P 500 earnings will rise about 8.0% for the year, still slightly above the long-term average of 7%. The most-cyclical companies will see a meaningful deceleration in growth, which will more than offset acceleration in other areas.