One of the biggest concerns this year has been the crashing oil prices wreaking carnage on the energy sector. But, in the last couple of weeks oil prices have increased to above $50 on geopolitical concerns and a weaker U.S. dollar. During these two weeks the energy sector, S&P 500, surged nearly 3.5 percent bringing a needed boost to this decimated sector. Maybe the negative 60 percent earnings growth expected for the first quarter in energy is excessively pessimistic which would bode well for our future outlook. Corporate earnings in this bull market have shown astounding resilience and this time may be no different. Meanwhile, 4th quarter 2014 GDP – 3rd revision – stayed at 2.2 percent but, the consumer seems to be benefiting from these low oil prices which is another positive offset for this quarter’s coming earnings season. Please see “Oil Price & Intensity” on page 66 of the Voya Global Perspectives™ book.
Next week, Doug Coté will speak at the Factset 2015 Investment Process Symposiu in Washington, D.C., where the Keynote speaker will be former Federal Reserve Chairman Ben Bernanke.