Comments from Federal Reserve chair Janet Yellen spurred a Santa Claus rally this week, analysts see the rally spilling over into 2015. Leah Duncan reports.
TV AND WEB RESTRICTIONS ~NONE~ The Santa Claus rally is on - a last minute gift from Fed Chair Janet Yellen and company. Stocks soared after the Federal Reserve indicated they're in no rush to raise rates. And market watchers see the rally continuing into 2015. John Manley, Chief Equity Strategist at Wells Fargo Advantage Funds. SOUNDBITE: JOHN MANLEY, CHIEF EQUITY STRATEGIST, WELLS FARGO ADVANTAGE FUNDS (ENGLISH) SAYING: "I think the fundamentals, which is still what you have to look at - you can glance at the technicals, but look at the fundamentals. The Fed is accommodative, they want to help the economy and that goes on for a while. The earnings are still going up. I might change my mind if they don't, but still they have an upward bias and the valuations are still in the middle, neither here nor there so what's wrong with that?" But despite the optimism, some investors are still erring on the side of caution. Charles Schwab's Jeffrey Kleintop SOUNDBITE: JEFFREY KLEINTOP, CHIEF GLOBAL INVESTMENT STRATEGIST, CHARLES SCHWAB (ENGLISH) SAYING: What I'm hearing from Schwab clients are that they are still on the cautious side. Sure they might be putting some money to work, but they're more focused on what the risks are. I'm not hearing that investors are overly confident right now.." And of course, a correction is still posible. SOUNDBITE: JOHN MANLEY, CHIEF EQUITY STRATEGIST, WELLS FARGO ADVANTAGE FUNDS (ENGLISH) SAYING: "The whole point is, if it pulls back and it will, there's still buying opportunities as long as the Fed desires to help the economy." Nevertheless, the Federal Reserve will take the spolight in 2015 as markets anticipate a rate hike some time around the middle of the year.