US stocks seen higher at this time next year - Citi

Tobias Levkovich, an analyst at Citi group appear optimistic on the US equities, arguing that they see a 90% chance the US stocks will be higher in a year’s time as positive sentiment has moderated and earnings growth will likely remain strong.

Additional Quotes:

“We understand the anxiety, but the environment is not the same as in 2007, yet the bears are still out.”

“Notably, we were concerned in September when most were not, and now we feel more upbeat when others are less sanguine.”

"Admittedly, handicapping the ramifications of trade protectionism is very difficult, as are geopolitical risks, but the endogenous trends are more sanguine even as housing and autos face challenges from higher interest rates."

"Fortunately, the growth in consumer spending, generally, and the service sector, specifically, provide underlying economic (and thereby earnings) support."