PODCAST: What is driving the bull market in US stocks and how long will it run?
With a number of supporting factors, Dhaval Joshi from BCA Research, tells IG that there is every expectation that the bull run in US equities will continue for the foreseeable future.
There may be bumps in the road, he says, but the rally remains intact. That is until there is a reversal. What causes that reversal is likely to be one of three factors.
First is that we start to see extreme valuations calculated by multiplying the long bond yield by profits. The second reason would be if the 30yr yield were to rise ‘substantially’ and finally if profits were to drop dramatically and there is still no evidence that profits are going to retrench.
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