U.S. Stocks Will See Pressure in New Year Says Dreyfus Manager

Fully valued U.S. stocks could see some difficulty in the coming year as Japan continues to struggle and China slows, said Suzanne Hutchins, portfolio manager for the Dreyfus Global real Return Fund. Hutchins added that corporate balance sheets have grown bloated with debt in recent years as companies have loaded up on cheap debt, most notably in the currently troubled energy sector. She said there is a high probability that a number of energy companies with high yield debt in the market could default. Hutchins said retailers that have been disrupted by the 'smart revolution' will also face difficulties.