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Unloved Rally Has Strength to Overcome Early Rate Hike

The stock market rally is still unloved and has room to run, despite near term volatility, said Michael PeQueen, Managing Director at HighTower. PeQueen said the Fed is behind the curve so rate hikes could come sooner than expected, yet that still will not keep stocks from moving higher. Furthermore, he said U.S. GDP for 2014 may come in lower than earlier projected, yet it will still provide fuel for the rally. Finally, PeQueen said the strong job market and low inflation is driving consumer confidence, leading to increased spending at retailers and on consumer technology which will benefit those stocks.