The US sharemarket surge shows no sign of ending and why should it

The US sharemarket surge shows no sign of ending and why should it. The US economy is progressively strengthening, earnings expectations are not challenging, valuations are at average levels, buybacks are continuing and the US Fed will maintain its highly supportive monetary policy, even when rates go up. Unless US Inflation surges or bank credit accelerates, the US Fed is likely to do only a couple of rate hikes in 2015, after which they will wait to see how the economy transitions, before additional rate hikes in 2016. This means US rates are set to remain extremely low for another two years at least, and indeed if rates peak around 2% as I suspect this cycle, they will remain constructive for the US sharemarket. The Key for investors is maintaining vigilance on valuations and not paying too much for any income stream. Overnight report available here: (VIEW LINK)