My 2015 stock market prediction in 140 characters or less

As short and sharp as it may have been, Credit Suisse Research’s expectations are clear.

In 140 characters or less, it summed up its forecasts for the Australian share market in 2015, tweeting:

“2015 Australian Outlook: “We expect Aussie equities to rally to 6,000 on the ASX 200 by Dec 2015” #Australia”.

The tweet will no doubt come as a relief to investors who have watched their portfolios plunge in value in recent months. From its current level at roughly 5,230 points, Credit Suisse’s predictions would indicate a 15% rally from the benchmark S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) in 2015.

As highlighted by Fairfax media, Credit Suisse analysts believe that the market will rise strongly over the next 12 months as a result of lower interest rates, which could fall as low as 2%. While lower rates would likely result in greater spending throughout the economy, investors and companies can also use the debt market to buy equities, further boosting the sharemarket’s performance.

Although there is no such thing as a “risk-free” investment, there are certainly a number of stocks which could be set for strong rallies in 2015. In particular, investors should look towards stocks offering solid dividend yields which could attract investors away from the poor returns from term deposits or bonds.

Investors may want to consider companies like Woolworths Limited (ASX: WOW) or Coca-Cola Amatil Ltd (ASX: CCL), both of which are currently trading at heavily discounted prices and offer compelling yields.

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In 140 characters or less, “I expect dividend stocks to pave the way to stock market fortunes in 2015 #ASX #dividends”.

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Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd. You can follow Ryan on Twitter @ASXvalueinvest.

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