Year End Rally

Here is a good article by Bret Jensen at Seeking Alpha about why stocks will probably rise through the end of the year while a correction is almost certain in 2015.  One reason for stock prices increasing is that fund managers will be buying the dips according to Bret.  They will be trying to catch up on their benchmarks to look good for the year.

One reason for volatility in January will be escalating political tensions when the new Congress is seated in January according to the author.  Secondly, a bad winter could cause the economy to contract just like it did in the first quarter of 2014.  Thirdly, we will not be getting as much help from the Federal Reserve.  So, I will be taking profits toward the end of the year just like Bret since there is no telling what might happen in 2015.