NEW YORK (TheStreet) -- U.S. equities continue to rally on Friday and Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC, says small and midcap stocks could outperform in 2015, as the Russell 2000 hit its first new high since July.
Stocks can shrug off higher interest rates in 2015, as global liquidity continues to drive the market higher, he said on CNBC's "Fast Money Halftime" show. He likes financial and healthcare stocks, but acknowledged that the market will decline if the European Central Bank fails to deliver some sort of stimulus in January.
It's not that there's an overwhelming amount of buying in the stock market, there just isn't a whole lot of selling, reasoned Jon Najarian, co-founder of optionmonster.com and trademonster.com. The market may see a small pullback in January, but otherwise, 2015 should be a good year.
Just because the markets are closing 2014 in impressive fashion, doesn't mean 2015 won't be good too, said Jim Lebenthal, president of Lebenthal Asset Management. He believes the S&P 500 will provide a "high single digit return" next year as the U.S. economy continues to gain steam.
U.S. consumers also have more liquidity as lower energy prices are helping to boost disposable income, according to Sarat Sethi, principal, portfolio manager and equity analyst at Douglas C. Lane. He likes consumer discretionary, industrial and technology stocks as a result.
With lower gas prices, lower unemployment, and steady housing prices, the consumer is much stronger, said Dana Telsey, CEO of Telsey Advisory. As a result, retailers are a direct beneficiary of higher consumer spending. Many retailers have "easy" comparable-store sales numbers to top in the first half of 2015, she said, due to last year's polar vortex storm.