Markets rose on Thursday.
The S&P 500 rose 0.6 percent, rising for an eighth consecutive session and closing at a record close for the sixth consecutive session after the US Congress passed a budget resolution seen as setting the stage for an overhaul of the tax code.
The STOXX Europe 600 rose 0.2 percent, with Spain's IBEX 35 index surging 2.5 percent despite an ongoing stand-off between the central government and Catalonian secessionists.
In Asia, the Nikkei 225 was flat as markets in China and South Korea were closed for holidays.
“The path of least resistance for markets seems to be higher,” said Aaron Clark, portfolio manager at GW&K Investment Management. He added that “valuations are fine, given where we are in terms of inflation”.
Indeed, PNC Asset Management's global chief investment strategist Bill Stone said that there is scope for a 30 percent upside for US stocks in 2018 based on earnings and corporate bond yield forecasts.
While acknowledging that the odds of such a scenario materialising are very low, Stone said that his calculations “at least tells you that stocks are not wildly overvalued, certainly relative to interest rates”.
In the meantime, though, Bob Pisani at CNBC thinks that the US stocks “are very overbought”.
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