David Shulman, Salomon Brothers Inc.'s equity strategist, predicts lower returns and higher volatility in the domestic stock markets this year.
Investors who expect a repeat of favorable economic conditions that allowed exceptional returns in 1993 may be disappointed, he said in a recent report.
Instead, he anticipates investors' complacency about the stock market will be jarred by the stronger economy, which will boost short-term interest rates by 50 to 100 basis points, the apparent end of the bond rally, and corporate profits will rise a modest 11%.
