During the Spring Festival, U. S. stocks also seem to usher in spring. Us stocks rose four days in a row last week, with all three major indexes up more than 4 per cent in the week. The S & P 500 recorded its best week in more than five years, sweeping away the haze of the plunge in early February.
MonicaDiCenso, a global investment expert at JPMorgan Chase & Co, said that US stocks are still expected to perform well in 2018, but investors should lower their expectations and it may be difficult to see a strong rally like that in 2017 this year.
"it's hard to imagine a repeat of the performance of US stocks in 2017, but of course that doesn't mean there can't be a strong rebound in 2018," Mr Diqianso said. "
Analysts make this assertion mainly because the fundamentals show that US companies can still develop strongly, which concludes that the strong momentum of US stocks can continue.
Us stocks soared throughout 2017
The S & P 500 surged 20% in 2017, similar to its 2014 rise-- in fact, the 2014 rally was still modest compared with 2017, up just 11%.
"if US stocks rise 11% to 13% from their current levels, this is still a very strong performance in history," she said. When you look at the fundamentals, it is hard for u.s. stocks to grow by 20% to 25% based solely on income growth. "
If the S & P 500 rose 11%, it would be higher than the historical average. Over the past decade, the s & p 500 has risen an average of 8%; over the past decade, u.s. stocks were the worst performers in 2008, down 39% and the best in 2013, up 30%.
Market fundamentals show that US stocks will continue to grow strongly.
In the first week of February, u.s. stocks fell off a cliff, with the Dow falling more than 1000 points in two sessions and the s & p 500 tumbling 5%, the biggest drop in 2016. But since then, US stocks have once again shown their amazing resilience: the market has rebounded strongly, the Dow is now close to the all-time high of January 26, and both major stock indexes have come out of the correction range, turning the performance of US stocks for the whole of 2018 into gains.
Di Qianso believes that the key to the rebound in US stocks is that the focus of the market has returned to the point that is important to stock valuations-market fundamentals. Mr DiQianso said the previous quick correction did not seem to be based on fundamentals. Given the current income growth, economic growth and the performance of all companies in the last quarter, the fundamentals are indeed very strong. "
So far, 4/5 of the listed S & P 500 companies have reported fourth-quarter results. Among them, 77% of the enterprises' profits exceeded expectations, and 78% of the enterprises' sales exceeded expectations. Taken together, the year-on-year growth rate is expected to be close to 15%.
Corporate growth is expected to continue with the same strong stone for the full year, with analysts saying revenue growth is expected to be 18 per cent in 2018, up from 12 per cent in 2017.