Wall Street is still looking strong and the odds are high that this trend will continue throughout 2015. Stock market investors can count on the currency market as well, as U.S. stocks are profiting from the strong dollar. What else do they need to take into account?
Specifically for stock portfolios stability, growth, and protection are key words. For stability you can look at great dividend stocks. No one should believe, of course, that keeping the money printers on like this will remain without consequences.
U.S. Stocks Vs European Stocks
For growth you could look at Europe, which should become a bigger part of the engine of the global stock market. Cyclical stocks also deserve a spot in the starting line up. Protection could come from capital protection or bottom formulas.
The dollar is strong without a doubt and the growth discrepancy between the U.S. and the Eurozone is only increasing. That also goes for the gap in interest rates that will only play to the advantage of the U.S. To the ECB, a weakening euro is the only remaining route for making the monetary policy more flexible.
Appreciation of the dollar from 1.24 to 1.15 per euro by the end of 2015 is still among the possibilities. A return of just under 10% in a time where your savings account brings in almost no return is worth your attention.
