S&P 500 at record high: rally or risk? Experts clarify!

S&P 500 at record high: rally or risk? Experts clarify!

Es sind keine spezifischen Adressen oder Orte im Text angegeben. - The financial markets are in the turmoil! The S&P 500 climbed one record high after the other and experts predict that this impressive rally could last for a long time. With an increase of around 35 percent by the end of October 2024, investors cheer, but the high ratings also throw shadows on the euphoric mood.

The Leuthold Group gives the all -clear: According to its analysis, the momentum of the past few months could outdo the fear of evaluation. Historically, when the S&P 500 increases by 30 percent in one year, an above -average performance often follows the following year. David Ramsey, Portfolio Manager of the Leuthold Group, explains that the momentum tends to strengthen itself and to generate an average increase of 13.8 percent in the next 12 months.

high ratings and their risks

Not everyone is optimistic! The Wall Street analysts warn of the alarming high ratings. The course-profit ratio (KGV) of the S&P 500 was 31.4 at the end of September-a record value that was only reached in a few historical moments. The returns could press these high ratings in the next ten years, with forecasts of only one percent annual return, as a report by the Bank of America shows.

Despite these warnings, there are bright spots: Bank of America emphasizes that a similar version of the S&P 500, which treats each share equally, is rated more attractive. If the large US companies succeed in continuing to increase their dividends, the equilibrium S&P 500 could even reach annual returns of up to 8 percent. The coming months will be decisive to see whether the momentum continues or the ratings brake.