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

Perpetual Equity Investment Company

Perpetual Asset Management (Australia)

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)


3 topics

Perpetual Equity Investment Company
Perpetual Asset Management (Australia)

The Perpetual Equity Investment Company Limited is an ASX listed investment company offering investors access to a portfolio of predominantly high quality Australian and global listed securities, selected by Perpetual Investment Management Limited.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.