Setting the Stage for a Potential Year-End Rally

The recent market correction was not due to Ebola fears or slowdowns in Europe or China. Instead, it was an adjustment back to trend rather than a reflection of deteriorating fundamentals.

October's spike in volatility and the 'mini-correction' may have set the stage for a year-end rally in most regional equity markets, as markets adjust back to trend and other economic factors play a role.

Declining energy prices could provide additional disposable income for consumers, which may help power the US economy and boost sharemarkets higher.

European stocks are considered attractive because they are too oversold to ignore. Large-cap multinational companies in Europe that pay dividends or have a history of increasing dividends are particularly appealing.

Japanese stocks may benefit from a weaker currency and additional demand for equities from the government pension fund, making them an attractive option for investors.

Emerging markets are entering a historically positive season. However, the asset class remains mixed, particularly as deleveraging continues to impact China's economy.

Investors might consider an overweight position in the US market, as the recent correction was an adjustment back to trend and not due to deteriorating fundamentals.

The government pension fund in Japan is increasing its demand for equities, which could provide additional support and benefits to Japanese stocks in the current market environment.