$5 trillion, an impressive number that apparently won’t “stop here”. This is the amount that US market has added to its overall value this year alone, with a valuation of almost 30% for the S&P500, and if that is not surprising enough itself, it should be borne in mind that 2019 was a year with countless uncertainties, stagnating corporate profits from 2018 and the tenth year of the largest economic expansion ever in the US. The lesson to be drawn from this performance is one that has been given by the market in recent years, monetary policy, i.e. low interest rates and asset purchase program. It may seem like miracles, but the “cures” will inevitably give rise to a very complicated situation to solve in the medium term, how to cure this addiction?
Also noteworthy is the good performance of the oil price this year, now very close to reaching the highs reached in July, notwithstanding the cooling in the major economies that resulted in lower manufacturing activity and global trade.
