Four years into the stock market party fueled by a punch bowl overflowing with trillions of dollars of central bank liquidity, you’d think a hangover might be looming.
But almost all of the fund managers attending the London leg of the Reuters Global Investment Summit this week – with some $4 trillion of assets under management – say the party will continue into 2014.
Pascal Blanque, chief investment officer at Amundi Asset Management with over $1 trillion of assets under management, reckons markets are in a “sweet spot … largely on steroids with the backing of the central banks.”
If their collective benign world view pans out, the S&P 500 will comfortably post double-digit gains next year.
This despite having already tripled in just four years and chalked up a near 30-percent gain this year – its best year in a decade – to hit a record high above 1800 points. It’s been 18 months since the index chalked up a 10 percent correction.