Marcus Brookes, head of Multi-Manager at Schroders, gives his outlook for 2015 and explains why he’s positive for the year ahead:
- The reduction in oil prices from 110 USD per barrel to 50 USD per barrel essentially constitutes a tax cut, which could amount to an approximate 1.5% increase in disposable spending in the US.
- While this drop in oil prices is positive for the US economy, it is less positive for the bond market as we approach a time when the Federal Reserve are likely to be looking to raise interest rates.
- On the equities front, Europe is looking very cheap at the moment, and we could see good news for the European economy in the form of Quantitative Easing in the first quarter of 2015
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