The equity market is up this year, and S&P 500 and large cap stocks have performed best. Many investors may end up in a higher tax bracket this year, and will shield their earnings with reinvestments, Ennes said.
Interest rates are expected to increase. The 10-year U.S. Treasury bond yield is expected to hit 2.4 percent before the end of the year. Interest rates have remained low for an extended period of time, and jobless rates have been ticking down.
"Corporate cash is at all-time highs," Ennes said. "A lot of that money will flow to capital expenditures, buybacks, dividend increases and mergers and acquisitions."
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