US stock markets at record high: Is the rally justified?

US stock markets at record high: Is the rally justified?

US stock markets, led by the S&P 500, have staged a remarkable rally since October, rising over 25 percent. Market expert Henry Allen from Deutsche Bank describes the current market situation as “almost unprecedented”. In recent months, the index has posted gains in 15 out of 17 weeks, a rarity last seen in 1989. This development has led to concerns about potential overheating of markets. The ongoing rally is supported by falling inflation rates and positive economic data, which in turn have led the Federal Reserve to adopt more dovish policies.

The rally was further fueled by hopes of further rate cuts, although market expectations for such measures have changed. The question of whether the current development of the US stock markets is justified is hotly debated. Some experts warn of possible overheating, while others see the positive economic dynamics as the basis for further growth. The coming weeks will show whether the rally can continue or whether the markets will experience a correction.

Investors and analysts are keeping a close eye on developments in the US stock markets as the current situation presents both opportunities and risks. It remains to be seen how the economic conditions will develop and what impact they will have on the markets. The discussion about the sustainability of the current winning streak will certainly continue in the coming weeks and months as investors adjust their investment strategies accordingly.