The great US stockmarket melt-up

We’ve seen a 'melt-up' in the US stockmarket, with the S&P 500 up by 12% in less than a month. But storm clouds are gathering.

We've seen "a melt-up" in the US stockmarket, says Vito Racanelli in Barron's. After its brief October wobble, the S&P 500 is up by 12% in less than a month. It has notched up almost 50 record highs this year.

But storm clouds are gathering. For one thing, US economic growth looks increasingly solid. It may seem odd to describe this as a "headwind". But the stronger economy is also pushing up the value of the US dollar against other currencies. In turn, that hits the value of any overseas profits that American firms make that's around a fifth of profits made by S&P 500 firms.

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