Wednesday, 6 February 2019

Investors “comfortable” with stock prices but further returns likely “modest”

Markets were mostly higher on Tuesday.

The S&P 500 rose 0.5 percent and the STOXX Europe 600 jumped 1.4 percent. However, the Nikkei 225 fell 0.2 percent.

“The main focus of the market has just been that people are getting more comfortable that the prices for stocks are reasonable,” said Rick Meckler, partner at Cherry Lane Investments.

That said, Goldman Sachs thinks there is little scope for further gains for the rest of the year.

“The rally we expected has happened swiftly, and given this we see relatively modest returns on equities from here,” Goldman said in a research report.

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