Energy stocks were the worst performers of the year. Crude oil prices were hit by an unprecedented global glut. Bobbi Rebell reports.
U.S. markets will start 2016 with a lot of caution, and no clear momentum in either direction after a lackluster 2015. Crude oil prices posted their second year of losses, pushed lower by an unprecedented global glut, and that weighed on the markets. Convergex's Nick Colas says the trend will continue into the new year. SOUNDBITE: NICK COLAS, CHIEF MARKET STRATEGIST, CONVERGEX (ENGLISH) SAYING: "I'd say, top of mind for investors certainly in the first quarter, oil prices, definitely. The affect of oil on the high yield market which has been a real theme in the back half of this year. That is going to persist and I think overall volatility, equity volatility is going to be the headline issue for the first half of next year " 2015 was also big year though for high profile tech and media companies, which helped lift the Nasdaq. Companies including Netflix, Amazon and Alphabet, which changed its name from Google, hitting record highs. Ken Kamen is President of Mercadien Asset Management. SOUNDBITE: KEN KAMEN, PRESIDENT, MERCADIEN ASSET MANAGEMENT (ENGLISH) SAYING: "We are going to start to see a movement away from that narrow band of stocks, the Facebooks, the Apples, the Googles, where everyone has been piling into because of momentum, and quality is going to start to matter again. You know, companies with strong balance sheets, strong earnings strong cash flow are going to really get their day." Investors will also be keeping tabs on the Fed, which after keeping investors on edge for most of the year, raised rates by a quarter of a point in December. Cumberland Advisors John Mousseau: SOUNDBITE: JOHN MOUSSEAU, DIRECTOR OF FIXED INCOME, CUMBERLAND ADVISORS (ENGLISH) SAYING: "We don't expect them to necessarily raise at every Fed meeting. They may not even raise a quarter point. they may use an eight of a point. So, maybe, by the end of next year, you get somewhere in the neighborhood of possibly one percent maybe one and a quarter." The next Fed policy meeting for investors to watch for is scheduled to begin on January 26th.