S&P 500 rises but starts 2020 “on perilous footing”

Markets were mixed on Tuesday.

The S&P 500 rose 0.3 percent, the Shanghai Composite rose 0.3 percent but the STOXX Europe 600 slipped 0.1 percent.

The S&P 500 ended the year up 28.9 percent, its best gain since 2013.

“While market volumes are predictably light, investors continue to strike a year-end cautionary tone as December optimism is gradually giving way to 2020’s uncertainty,” Stephen Innes, a market strategist at AxiTrader, wrote in a note.

Indeed, while many analysts see the market continuing to rise in 2020, most predict a weaker performance than in 2019.

In fact, Datatrek’s Nicholas Colas suggested that “by any objective measure US large-cap stocks start 2020 on perilous footing”.

“Valuations are rich. Corporate debt levels are at record highs. We have not seen any earnings growth in 4 quarters,” he wrote in a note.