Take stock in this
U.S. stocks are beating every major asset class for the first time in 17 years even as economic growth weakens and profits rise at the slowest rate since 2009, Bloomberg reported.
The Standard & Poor’s 500 index has rallied 14 percent this year, beating U.S. Treasury securities, corporate bonds, commodities, the dollar and equities in Asia and Europe, data compiled by Bloomberg show.
The last time that happened, in 1995, the S&P 500 was posting the biggest annual advance of the last five decades. With a price-earnings ratio close to today’s level, the index gained another 93 percent in the next 2 1/2 years.
“We see good earnings growth and improving economic outlook, we see good equity valuations and easy monetary policy, we see skeptical investors and low positioning in equity assets,” said Max King, a multi-asset strategist at Investec Asset Management in London. Read more.