US stocks in record-breaking run, “nobody is worried anymore”

US stocks continued on their record-breaking run last week.

The S&P 500 closed at 3,240.02 on Friday, another record high. It is now up 29.25 percent for 2019.

Edward Yardeni, president of Yardeni Research, sees further gains for the S&P 500 next year.

“Looking at 2020, I’m expecting earnings to be up 4% to 5%, which isn’t fabulous,” he told CNBC on Friday. “But it should be enough to get the market up to 3,500 by the end of next year.”

However, Yardeni also noted that the market is not cheap and suggested that it could fall 10 to 20 percent if the rise is too rapid.

“Bull markets do best when you’ve got a wall of worries,” Yardeni said. “What I’m worrying about is nobody is worried anymore.”

Similarly, Lance Roberts at Real Investment Advice said that markets are “extremely deviated from long-term trends”. Combined with “the extreme complacency and excess bullishness”, a “fairly decent 5-10% correction is likely over the next couple of months”.