
U.S. stock market party may continue
The S&P 500 has consistently set new records this year, approaching the 5000 threshold. Tine Choi Danielsen, chief strategist at PFA pension company, predicts the uplifting trend in American stocks will persist, forecasting a 5-10% return this year amid prospects of lower inflation, interest rates, and sustained growth. Seven predominant technology companies, known as the ‘Magnificent Seven’, are primarily responsible for the index’s rise, jointly accounting for 65% of its growth. These companies, central to ongoing digitization and the industrial revolution, are fundamentally profitable, unlike the pre-dotcom crash era. Recent slower-than-expected drops in U.S. inflation temporarily shook the market, but did not alter expectations of continued decline, which underpins market recovery. PFA achieved a 12.1% return last year, with American stock investments alone yielding an 18% return, partly thanks to its U.S. stock portfolio.