Halfway through 2021, with the advent of July, institutions have given an up-to-date view of the market in the next six months: don't worry about the stock market rising, just get used to it.

On Friday, the three major indexes of U. S. stocks closed higher for the second day in a row, which was also the fourth day of the week. The S & P 500, in particular, closed at a record high for the seventh day in a row, the longest winning streak since August last year, and the first seven-day high since 1997.

Meanwhile, the MSCI global index (MSCI All-Country World Index) has risen 12% so far this year, reaching an all-time high.

Although some investors warn of the risks of overvalued stocks, big Wall Street institutions such as Blackrock, State Street Global Markets, UBS Asset Management and JPMorgan Chase & Co Asset Management expect that the sharp rebound in corporate profits and strong support from global central banks will continue to drive the stock market rally in the second half of this year. Many investors will increasingly look to markets outside the US for more returns.

In the eyes of these institutions, one of the reasons behind the stock market rally is the flood of liquidity.

In the US, for example, Goldman Sachs Group strategist pointed out that US money market fund assets soared to a record $5.5 trillion during the epidemic, indicating that there was a lot of cash on the sidelines.

Carsten Roemheld, a capital markets strategist at Fidelity International, said in an interview with Bloomberg that many indicators show that there is still a lot of liquidity in the financial system looking for investment targets. However, he also cautioned that, given the support of global central banks, money will continue to flow into the stock market, but the expected return will be much lower than the current level.

Investors generally prefer cyclical and value stocks, believing they will benefit the most from the economic rebound, according to Bloomberg; regionally, although European and Japanese stock markets are currently lagging behind the United States, but they prefer European and Japanese stock markets.

The second reason to be bullish on the stock market is that corporate earnings are expected to rebound sharply.

Globally, corporate earnings expectations have rebounded to pre-epidemic levels. Nearly 50% of the companies in the s & p 500 have raised their full-year forecasts in the past three months, the highest percentage level since 2010, Bloomberg said.

Of course, in addition to those who are optimistic about the stock market, there are also people who hold different views.

For example, Wall Street News mentioned in the previous article, "Wall Street veteran" David Roche warned that the uncertainty comes from the attitude of the Federal Reserve. He predicted that the most likely catalyst for the bursting of the US stock bubble was that the Fed would be forced to stop sending optimistic messages and "start talking about ending more monetary stimulus and ending the days of financing budget deficits".

In fact, at the FOMC meeting in June, the market was shocked by the unexpected turn of the Fed's position, and then a number of senior Fed officials expressed their hawkish position in the air.