Don’t expect much profit coming from major equities in 2018, warns investment bank

U.S. stocks have been on fire This particular year. The S&P 500 is actually up more than 15 percent in 2017, boosted by strong corporate earnings, expectations of a U.S. tax code overhaul in addition to also improving global economic conditions. Monetary policy — which has been a boon for stocks since the financial crisis — also remains loose compared with historical standards.

however analysts at the investment bank said the S&P 500 was currently “entering expensive territory.”

On Monday, Alain Bokobza, head of global asset allocation at SocGen, said U.S. stocks were comparable to a boiling frog which doesn’t realize the trouble surrounding This particular.

“We expect stretched valuations in addition to also rising bond yields to limit equity index performances in 2018 in addition to also the prospect of a U.S. economic slowdown in 2020 to further cramp returns in 2019,” he said.

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