Positive fundamentals remain in place

Early in 2000 the current expansion will become the longest in US history. Earnings have enjoyed prolonged growth, the budget is in surplus for the first time in 30 years and interest rates and inflation have enjoyed a downward trend despite unemployment being barely over 4%. As for the equity market the S&P 500 has provided a spectacular return of 17.6% pa in the 1990s and is up over 24% pa and 27% pa respectively over the last three and five years. The market has tripled since late 1994, a time when many asset allocators viewed it as expensive. So what can the US market do for an encor...