US stocks rose last week. The S&P 500 rose 0.7 percent for its fifth consecutive weekly gain and ending the week on a record high.
Despite the record-breaking run, some analysts remain sanguine about US stocks.
“The market is in a definite uptrend and there is not a lot of volatility,“ said Frank Cappelleri, executive director at Instinet LLC.
“Overall, I can’t think of anything that is a worry,” said Karyn Cavanaugh, senior market strategist at Voya Financial. “The Trump administration is likely to sweeten any negative policy or any vinegar with a teaspoon of sugar.”
While Ethan Harris, global economist at Bank of America Merrill Lynch, wrote in a note that with “potential big policy changes in Washington, political risk in Europe and geopolitical concerns, there are plenty of reasons to be uncertain now,” he thinks that “the markets and economy have learned to live with high uncertainty”.
Finally, Warren Buffett said in his annual letter to Berkshire Hathaway shareholders that while large market declines may happen, “no one can tell you when these traumas occur”.
In the meantime, with innovation, productivity gains, entrepreneurial spirit and an abundance of capital, US stocks are “virtually certain to be worth far more in the years ahead”.
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