To gain perspective, look back upon the last six months of 2014.

The S&P 500 index traded at 2000 in early September. Then a fall in oil prices accelerated, causing energy stocks to sell off. Analyst cuts to Energy sector EPS took the S&P 500 down. Compounding matters, in hindsight, European deflation took down international indexes starting in June. U.S.-driven earnings beats drove the S&P 500 back up.

Now, look ahead to 2015.

Stock strategists at Zacks thinks more U.S. market upside will come. A reversal in oil price momentum can turn non-U.S. markets around. Nevertheless, stay heads up for a bond blowout.

Does oil turn by 2H-15? Consult the market oracle! Nobody really knows.

What’s the 2015 U.S. Outlook?

Here’s what the San Fran Fed had to say this month:

(1) U.S. GDP Growth Stays On Track

[The U.S. Economy] appears on track to continue growing at a moderate pace—between +2.5 and +3% over the next two years. Tailwinds underlying this growth include rising incomes, strong household balance sheets, low interest rates and falling gasoline prices. Headwinds include the recent strengthening of the dollar and weak foreign economic growth.

(2) U.S. Jobs Markets Improve

As the [U.S.] labor market continues to improve and wage and salary pressures rise, we expect core inflation excluding volatile food and energy prices to continue rising toward +2%. Headline inflation, on the other hand, has moderated in recent months, a trend we expect to continue through the middle of next year.

This downward movement is driven mainly by the ongoing declines in oil prices. However, we expect oil prices to stabilize by mid-2015, after which we expect headline inflation to start rising toward the Federal Open Market Committee’s +2% target.

(3) U.S. Deficits Stay Under Control

Looking forward, the decline in the Federal deficit, and any corresponding drag on the economy, appears to have largely run its course. The federal budget deficit is projected to increase slightly over the next 10 years, assuming the continuation of current budget policies.

Zacks Sector/Industry/Company Telescope

January kicks off a New Year for investors, big and small. The early sector winner is Info Tech. Companies have stepped up buying IT equipment. Consumers too. Standing head and shoulders above, there appears no sector close to IT.

 (1) Far and away-- the most attractive sector is Info Tech. Upgraded to Very Attractive are industry groups of Misc. Tech, Computer-Office Equipment, Electronics-semiconductors and Telco equipment.

What’s going on? It’s both business and consumer buying that keeps IT earnings estimates moving up.

Zacks #1 Rank Company to Look at: Broadsoft Inc. (BSFT - Snapshot Report)
This company provides software that enables fixed-line, mobile, and cable service providers to deliver voice and multimedia services over internet-protocol based, or IP-based, networks.

(2) Health Care slips to just Attractive.  Focus on Medical Care.

Zacks #1 Rank Company to Look at: Concord Medical Services Holdings Ltd. (CCM - Snapshot Report)
This small-cap company operates a large network of radiotherapy and diagnostic imaging centers in China.

(3) Financials remain Attractive. The cyclical bid is on for Insurance, Real Estate and Consumer Finance. There is no deeply unattractive industry here.

Zacks #1 Rank Company to Look at: Berkshire Hathaway (BRK.B - Analyst Report)
Berkshire’s property and casualty insurance business has been the engine behind its growth.

(4) Materials look Attractive! Early in 2015, that may be a surprise to most investors. Paper, Containers & Glass and Building Products & Materials offer savvy investors attractive companies now.

(5) Industrials are a Market Weight sector. The clear leader remains Airlines, with the falling oil prices keeping wind at their backs. Take a look at Pollution Control and Aerospace & Defense stocks too. Metal Fabricating looks terrible.

(6) Consumer Discretionary is Market Weight at best. Other Consumer Disc, Apparel, Leisure and Media look the best among the dirty shirts here. But they are not on fire.

(7) Consumer Staples is Unattractive. Only Food & Drug retail reaches the market weight area. Everything else is lame.

(8) Telcos are Unattractive.

(9) Utilities are Unattractive. Best in class are the Electric Power companies.

(10) Energy stays in the tank, big time. The best you can do is an Unattractive bid on Coal or Alternative Energy or Pipelines. Steer clear of E&P, Drillers and the Big Integrated firms.

This article has been extracted from John Blank's January Market Strategy piece. To download the entire PDF, click here (premium members only).