Markets next year will look strikingly similar to 2014, with upside of 12 to 15 percent, RBC's chief U.S. strategist, Jonathan Golub, told CNBC on Friday.
Low interest rates and inflation as well as sound management of expenses and buybacks, will produce strong stock market returns in a good, but not great economic environment, Golub said in a "Squawk on the Street" interview.
He also sees U.S. companies—at least those without high foreign exposure—as insulated from weakness in overseas markets because the United States is more shielded in terms of foreign trade than many other countries.
Asked whether multiples could start to contract, he said the real question on forward basis is "What happens when interest rates rise?"
Multiples can continue to expand even after the Federal Reserve allows interest rates to rise, said Golub. That's because when rates rise from a very low level, investors tend to see the world as a healthier place, he said.
"It's funny that when rates are high, rising rates are the enemy. When rates are low, they're your friend. So I fear the Fed less than I think many might."