Keep connected
Our investment management team is made up of engaged thought leaders. Get their latest commentary and stay informed of their frequent media interviews, all delivered to your inbox.
Stocks have rallied sharply in the U.S., Europe and Japan this year, mainly on the record levels of “Quantitative Easing”, or “QE.” (read as low interest rates and massive purchases of government bonds by central banks). The S&P500 Index, shown below, has surprised the skeptics this year and rallied right through the old highs last seen in 2007. While the technical condition of the market show it as somewhat extended at the top end of the trading range, every minor pullback has been met with fresh buying. Clearly there is still money on the sidelines that has missed the rally over the last year. We also have to consider the possibility that money will eventually move over from bonds to stocks once investors realize that interest rates will be heading higher. While we will still see corrections along the way, the recent trend has clearly been up.