Last week the Dow Jones Industrial Average reached record highs. Many expect the Standard & Poor’s 500, a broader market index, to follow the Dow’s lead soon. Is this a time to consider committing significantly to U.S. equities, or a time to take profits?
Most experts feel that the current U.S. economic recovery has yet to hit its stride. They cite weak GDP growth as evidence of a recovery that has not begun to gain traction or build up a full head of steam. Economists tend to be bullish about the U.S. economy’s immediate future. Fidelity Research touts an expected manufacturing renaissance fueled by cheap energy and a significant recovery in housing. JP Morgan Asset Management feels that U.S. equities remain undervalued.
