Deutsche Bank's 10 Investment Themes For 2015

In a recent report, analysts at Deutsche Bank outlined their views on ten investment themes for 2015: 1. Good, but not “Great Expectations” Valuations in equity markets around the world have increased 70 to 150 percent from their 10-year lows, and bond yields are near record lows. 2. Diverging dynamics in monetary policy The first rate hike by the U.S. and the U.K. is expected to come in 3Q15, and analysts expect the U.S. to be the developed market leader in 2015. 3. Global developed fixed income Economic growth will lead treasury yields higher in 2015, and analysts project a 2.6 percent target for 10-year Treasury Bonds. 4. Emerging market fixed income Emerging market spreads offer an attractive investment opportunity. 5. Developed market equities Analysts estimate 10 percent earnings growth for the S&P 500 in 2015, a number which would represent the first time since 1928 that earnings have grown for seven consecutive years. 6. Dividend stocks The dividend yield of the S&P 500 nearly exceeds the yield on 10 Year Treasuries. 7. Sector focus Technology has lagged during the recent bull market, and the Nasdaq is still about five percent off its record highs in 2000. 8. Emerging market equities Analysts predict that the economic growth premium that emerging markets deliver over developed markets will shrink to a decade-low 1.2 percent in 2015. 9. Dollar dominance Despite a double-digit rally in 2014, the dollar just recently broke out of a multi-decade technical downtrend. 10. Ranking real assets Analysts rate infrastructure, REITs, crude oil and gold as their top real asset investments for 2015.