The S&P 500 index hit the 2,000 level for the first time during intra-day trading yesterday, a rise of 300% from five years ago.
The index returned 59% since the start of 2012, 40% since the start of 2013 and 8% in 2014 to date.
Dominic Rossi, chief investment officer, equities, Fidelity Worldwide Investment, concedes that US equities are no longer cheap on most valuation measures, but says he remains bullish.
Rossi says “the strength and duration of the resurgence will surprise many investors”.
Tom Becket, chief investment officer, PSigma, is equally positive on the US economy, adding that the Federal Reserve chair Janet Yellen “will do anything she can not to raise rates, allowing the bulls to run riot”.
However, Becket says even as equity markets seem likely to test new highs, it is possible to make an overtly bullish outlook for equities in the next few years.
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