Thomson Reuters Markets Editor David Gaffen expects 2015 to be full of ups and downs for the U.S. economy.

SHOWS: NEW YORK, USA (JANUARY 5, 2015) (REUTERS - ACCESS ALL)

1. THOMSON REUTERS, MARKETS EDITOR, DAVID GAFFEN, SAYING:

JOURNALIST ASKING DAVID GAFFEN: 'Overall, what are market watchers seeing 2014 versus 2015?'

GAFFEN: 'Well, what we are seeing is that we have had another very strong year for the market in 2014 and so the question is whether in 2015 we can get the same kind of appreciation in the stock market that we have seen in this past year. Valuations now have reached a point where people are starting to see them as expensive. And so as a result the question is whether this economic acceleration we are seeing is something that can be repeated in the market or whether the market has kind of factored that in already in its gains that we saw this year and of course in 2013 which was a phenomenal year.'

JOURNALIST: 'And you have done a lot of surveys. What is the general consensus out there about the year?'

GAFFEN: 'General consensus about next year is this, that S&P will end the year next year at 2200. Now we are already at about 2083 or something in that various range, that is about a 5 or 6 percent gain and we have seen a lot of gains in December already. And so when you put those things together you get the sense that people are expecting more of an up and down kind of year. In some ways it will be similar to 2014, I mean we are ending the year up about 13 percent of the S&P but if we remember in mid-October or so we were basically flat on the year. So we had a nice beginning to the year, then things tailed off, we bounced back up, tailed off for a few months and didn't do anything and then had that pretty bad selloff in October. And then since then the market has sort of roared back. So while we were at a record just a couple of days ago it has gone through some ups and downs to get there. And I think that a lot of people are seeing more ups and downs next year. That is the kind of big thing that people are looking for.'