US stocks had a mixed performance last week. The Dow Jones Industrial Average rose 0.5 percent to finish at a record high but the S&P 500 was flat and the Nasdaq Composite fell 1 percent.
Still, all three stock indices are at or near record highs, with many investors viewing stocks as overvalued.
However, James Connington at The Telegraph wrote last week that stock markets "are not about to crash".
The reasons are as follows:
1. The global economic recovery isn't over
2. Centrals banks won't let them
3. Company profits are growing
4. Cash is already sitting on the sidelines
5. Investors aren't 'irrational' yet
In addition, JPMorgan has pointed out that the much-touted concern that the stock market's rally has been concentrated in growth stocks may be misplaced.
"While equity leadership has been narrowing into growth stocks, history suggests it is not at extreme levels and not far from historic norms," JPMorgan equity strategists wrote in a note.
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