Equities will keep hitting records next year as companies benefit from an expanding U.S. economy and volatility creates opportunities for investors, according to UBS AG strategist Julian Emanuel.

The Standard & Poor’s 500 index will climb 9.5 percent from last week’s close to 2,225 by the end of 2015, Emanuel wrote in a report today. S&P earnings will reach $126 a share, up 11 percent from today’s level, Emanuel wrote.

“Given the fact that where we are at the point of the cycle and interest rates coming up from such an absolute low level, you can get multiple expansion that’s above and beyond,” Emanuel said in a phone interview.

The S&P has rallied 9.4 percent since reaching a six-month low on Oct. 15 as companies beat analysts’ earnings estimates at the fastest pace in four years and reports indicated the economy may weather the end of Federal Reserve bond buying. Stocks tracked by the index trade at about 18 times annual earnings, compared with a 10-year average of about 16.3.

Shares will climb as wider price swings create buying opportunities, according to Emanuel. The Chicago Board Options Exchange Volatility Index is trading around 13, below its average of about 14 over the last year.

“If you look at the last few months, if you’re an investor, hedge fund manager or corporation that left some cash on the sidelines, that kind of selloff creates opportunity,” Emanuel said. “The Fed is likely to be active next year and that’s typically a time where volatility increases.”