The other side of the coin
There are those, however, that take a much more positive view of the prospects for US equities.
Charles Kantor, manager of the Neuberger Berman US Long Short Equity Fund is also positive on the prospects for US equities, but admits that 2016 is likely to require increasing selectivity.
Kantor believes that the recent falls seen in the US has shifted the valuation fulcum slightly, adding: “Equity valuations in the US already appear valued for very slow growth, tilting closer to the stagnation view of the world rather than a view for long-term normalisation. Thus, any sense that the global economy is not heading toward either a recession or secular stagnation could be very well received by investors in risk assets.”
There is no way to know for certain exactly how much further the US equity bull market has left to run, but the sheer length of the rise has left investors craning their necks to try and catch a glimpse of exactly how far up the hill they actually are and how steep the next fall might be.
