'Virtuous cycle' provides positive backdrop for US equities

US

Eagle Asset Management's Ed Cowart, manager of Nordea 1 - North American All Cap fund, says while the American market looks fragile, corporate earnings are steaming ahead.

The US stock market’s steady and almost uninterrupted advance over the past five years since the 2009 lows, has left many investors wondering whether a major decline is now inevitable. There is no denying US equities have advanced significantly over this period. But one often overlooked fact is that earnings, one of the key underpinnings of stock values, have also risen sharply. S&P 500 earnings came in at $57 in 2009, jumping to about $109 for 2013. While price increases have outpaced earnings, with the S&P climbing from about 660 to more than 1850 currently – we hardly believe this lev...