Seeing we’re benefitting from the typical third year rally (3rd year of a US administration’s term, that is), can we expect this renewed climb to continue for some time to come or will it peter out later this year? The risk of another US & then global equity market bubble, fuelled by QE2 & possibly even QE3, 4, 5… seems high, but will the US political scene end this run before that can happen? Will inflation fears put a (sensible) dampener on things before they get out of hand? The next six months look positive, even if its for the wrong reasons, after that, higher returns will bring on higher risks, stay in and take the risk or change your asset allocation and be very nimble.
