Constructive about US stocks

THERE is little doubt that some of the biggest risks to equity markets last year - depressed commodity prices, slowing growth in China and uncertain economic data points in Europe as well as the US, all accompanied by US dollar strength - will affect 2016 as well.

We continue, however, to be constructive about the outlook for US equities, encouraged predominantly by ongoing strength in the employment market, increased evidence of rising wages, better household balance sheets and robust consumer confidence.

We are optimistic about the prospects for US growth based on the strength of the consumer, which ultimately accounts for two-thirds of the economy.