After a turbulent year, stock markets ended 2020 on a strong note, with the S&P 500 in particular closing at a record high after a 16.3 percent gain for the year as a whole.
Despite the rally last year, investors remain bullish, according to a Reuters article.
“We are going to continue to see a push higher,” Peter Essele, Commonwealth Financial Network’s head of portfolio management, was quoted as saying.
“The market, overall, does not seem overbought,” said Tim Ghriskey, chief investment strategist at Inverness Counsel.
However, David Rosenberg, president of Rosenberg Research, thinks the stock market is “in a bubble”.
“Based on our [stock market] valuation work, we are anywhere from 20% to 30% overvalued based on a whole bunch of different metrics,” Rosenberg told CNBC last week.
Nevertheless, Rosenberg is not expecting an imminent pullback.
“As long as rates remain where they are, unless we have a real dramatic pullback in economic activity, this bubble that we’re in is probably not going to burst any time soon,” he said.
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