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Wrapping up the trading year: Analyst predictions for 2016

Traders work on the floor of the New York Stock Exchange, Dec. 31, 2015.
Lucas Jackson | Reuters
Traders work on the floor of the New York Stock Exchange, Dec. 31, 2015.

As 2015 comes to a close, some experts are ringing in the new year by offering their market predictions for 2016.

"I think we will see low-interest rates and low inflation, global slowdown that may continue weak growth out of China and in turn, of course, that's affecting commodity prices, as well," Heather Hughes of SunAmerica Funds told CNBC's "Closing Bell" on Thursday.

Again Capital's John Kilduff also told CNBC's "Closing Bell" that he expects the market to plumb new lows come mid-year.

"This is going to end badly and going to get ugly before we can turn this thing around," he said.

However, Hughes said that the positive light in this mix is the decoupling of central bank policy in the U.S.

"I think that sheds positive light that we are at full employment going forward that may help put some pressure to raise some of those wages for the consumer," Hughes added.



While it has been a good year for consumer stocks and consumer discretionaries, NYSE trader Stephen Guilfoyle said he's going to be a little more defensive on that front.

"The staples is where I see some opportunity. I think people will be a little stretched this year. It's not going to be a good year for the economy," he told CNBC's "Closing Bell." "I'm sure you've noticed the collapse in manufacturing and energy. I think a lot of people are paying a lot more for health care. There is inflation in areas where the middle class gets hurt, therefore they're going to be spending more on food, they're going to be spending more on the things they need to run their households and the staples are where you will have a shot."

Kilduff said that consumers are also spending on bigger-ticket items and consumer durables such as cars because of low gas prices. Kilduff said Hollywood is also benefiting as a result of increased consumer spending.

"I think folks are getting out there and I think it has buoyed consumer confidence for sure," he said. "I think we would be in a much deeper soup in terms of the economy if we had $3.50 or $4 a gallon gasoline, for sure."

As far as top themes for the global economy looking back on 2015, independent investor David Darst said China and corporate profits would top his list. Also on Darst's list of themes to watch are commodities and currencies.

"To me, if I were whispering in the year of Xi JinPing, I would say, 'You should tell the world that China is going to do what it did after the Asian debt crisis and not let the renminbi depreciate,' " he told CNBC's "Closing Bell." "That will basically calm everybody about a 'beggar thy neighbor' type of an environment of currency competitive depreciation."