Yesterday afternoon, the markets were given an early Christmas gift in the form of dovish comments from the Fed. The Fed said they would not raise rates for a couple of quarters. This, combined with lower oil prices, creates stimulus to personal spending which sent the stock market flying. The recent 5% sell off put stocks in a position where they were back to reasonable valuations and all this good news provided a recipe for a great Christmas gift to the equity markets.
Granite Group believes that equity markets will put in another positive year in 2015. If the markets slide a bit into year end, there will be more decent entry points. If the markets continue to rise into year end, Granite Group expects a little pullback early in the year setting up another good entry point. Either way, buying on pullbacks is the course of action.