US Stocks Will Continue to Rally says Charles Stanley

Think US stocks are overvalued? If you cash in your position now you'll be missing out on further gains says wealth manager Charles Stanley

Karen Kwok 22 June, 2017 | 4:13PM

Are US stocks too expensive? On many valuation metrics, yes. The S&P 500 has climbed from a low of 683 on March 6 2009 to a whopping 2,439 today – far surpassing the pre-recession high of 1,562. This year alone the index has risen 8%, pushed higher in particular by tech stocks. Technology stocks’ rise has also boosted the NASDAQ index, up 14.7% year to date.

Many asset managers – including Henderson’s Luke Newman just this week – have called the top of the US stock market, compelling investors to take gains and reallocate to more attractively valued regions, such as Europe or emerging markets.

Garry White, chief market commentator at Charles Stanley, and his peers remain happy investors in US equities. They believe the US equities rally is not over yet and tech stocks are not expensive.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alphabet Inc A1,524.87 USD0.00
Amazon.com Inc2,170.22 USD0.00
Apple Inc323.62 USD0.00
Facebook Inc A217.49 USD0.00
Hermes US Smid Equity R EUR Acc5.28 EUR0.21
Microsoft Corp187.28 USD0.00

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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