Positioning for 2016


Patrick O’Shaughnessy of O’Shaughnessy Asset Management says “if you look historically at what broad categories do well during period of rising rates . . . value stocks tend to do well.”  He notes that “this year has been the opposite story,” but with Fed rate increases widely anticipated, O’Shaughnessy says, “we would recommend that people re-position towards value stocks.”

Andrew Slimmon of Morgan Stanely Investment Management says he anticipates stocks will do “modestly better” in 2016. He noted that much of the decline in the market this year is “because of energy. So, you get rid of that energy decline, you get a little bit better return.”