Why the US Market is Still Compelling

Can you have too much of a good thing? When it comes to the US stock market the naysayers believe so. The S&P 500 has risen 125% over the past five years

Emma Wall 02 April, 2014 | 14:56
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Can you have too much of a good thing? When it comes to the US stock market the naysayers believe so. The S&P 500 has risen 125% over the past five years; through default threats, presidential elections, controversial political policies, oil and gas discoveries and QE tapering, the index just keeps climbing.

It is this stellar performance that has led many investors to believe the trajectory cannot continue at this pace. The law of investment gravity must kick in at some point after all; what comes up, must come down.

Recent disappointing economic data from the US seems to support this theory. Rounding up the swath of data across the pond Morningstar.com’s Bob Johnson said last week:

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

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Emma Wall  Emma Wall is Editor for Morningstar.co.uk

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