NEW YORK (TheStreet) - The S&P 500 is poised to generate a low-single-digit return during the next 12 months, according to Alan Gayle, senior investment strategist at RidgeWorth Investments.
As central banks from the around the world continue to look at different forms of stimulus and quantitative easing to spur economic growth, U.S. stocks should continue to benefit, he reasoned.
The improving U.S. labor market will pave the way to increased consumer spending, which should also help the stock market in 2015.
He said the financial and technology sectors are likely to outperform during the next year, while utilities and gold are two assets he wants to avoid. Gayle did acknowledge, however, that he has some exposure to the gold miners.
In regards to bonds, the Federal Reserve seems poised to raise interest rates sometime next year, but the increase will likely be gradual, he said. Money from foreign investors will help keep fixed-income yields low.
An improving economy is good for corporations and credit ratings. For that reason, high yield bonds look attractive, Gayle concluded.
-- Written by Bret Kenwell