Why US markets could surprise with a 25% climb from here

Why US markets could surprise with a 25% climb

Fidelity Worldwide Investment's Dominic Rossi says questions over the ability of the US to keep leading global indices higher are misplaced, with the region in the middle of a bull market and capable of climbing another 25% from here.

Some investors are beginning to question whether the US economy and its stock markets can continue to provide leadership to global equity markets after a strong run during which valuations have re-rated. In my view, the answer is a firm yes. While the US economy has had a subdued start to 2014, the strength and duration of its resurgence will surprise investors. Market volatility remains anchored, valuations are not expensive, and profits can move higher despite concerns over ‘peak’ profitability. With the prospect of supportive liquidity conditions, a return to the ‘cult-of-equity...