2015 Began with investors having high hopes in the stock market. Everything went well until a mini-crash hit the stores in August-October. The markets recovered, but investors remained sceptical of the markets.
Oil prices fell to a new low and investors became worried of the uncertainties that the future held. Their worries increased when, Goldman Sachs and others explained that the oils could go even lower. Domino theory made things worse by talking about other areas of the economy being affected.
Based on where the stock market ended in 2015, investors and analysts expect that 2016 will also be a bad year for equity markets. The New Year, however, can be very prosperous because the stock markets are now in a better place, and investors can move from risk to worry, and this will work to their advantage.
When stocks become weak, it is wise to buy stocks that are conservatively valued and pay high dividends called safe stocks.2016 can be surprising enough, and the markets can give better returns. In this case, it is advisable to buy stocks from companies that have successful growth.
In 2015 investors went through a series of attitudes from optimism at the beginning of the year, and then sceptical around the last quarter, 2016 holds a better future for investors, and it is, therefore, the best time to invest in the U.S.
James Dondero is the CEO of Highland Capital Management. Commonly referred as Jim, he together with Mark Okada founded Highland Capital Management in 1993. Jim went to the University of Virginia, where he graduated with the highest honours in beta, gamma, pi, alpha and sigma. He also has double majors in accounting and finance from the McIntire School of Commerce. He is a certified CMA, CFA, and CPA. He has also clocked over 30 years’ experience in the stock market.
In 1984 in the Morgan Guaranty program Jim began his career as an analyst. He later worked has a corporate bond analyst at American Express from 1985-1987.In that year he was promoted to became the portfolio manager in charge of $ 1 billion in assets. Jim later joined Protective life as the CEO and grew the start up from inception to having over $ 2 billion in the capital. James now lives in Dallas Texas. He is a philanthropist and has for many years actively participated in events that support education.
The article is recapped from http://www.forbes.com/sites/johntobey/2015/12/31/how-2015s-flat-stock-market-boosts-2016s-prospects/