Clues and commentaries on the global prospects for stocks, bonds and alternatives.
Selected Document
Learning from 2014: A Nod to Diversification
ClearBridge | January 6,2015

Hersh Cohen offers perspective on issues affecting the equity market

  • In one of the great surprises of the year, long-term interest rates fell sharply, confounding many who expected rates to rise.
  • The second great surprise of the year was the sharp collapse in oil prices, which, on balance, we judge to be a net positive for the U.S. economy.
  • If history has taught us one thing, it is that predictions, while sometimes interesting, can be dangerous if conditions change and the people making the predictions are inflexible.
  • We continue to worry about geopolitical factors that the markets have ignored and will be watching for signs of excess in stocks, but for now, we will revert to last year's forecast of modest but positive returns in 2015. We expect dividends will continue to be significant contributors to returns.