Managers dismiss sell-side concerns as US equities near tech bubble highs

S&P 500 showing signs of a comeback despite crisis

Fund managers and buyers are retaining their conviction in US equities for their defensive characteristics and the quality of the businesses, despite research suggesting forward valuations on some metrics have only been higher during the 2000 dotcom bubble.

Since 20 February, when the S&P 500 index reached its year-to-date peak of 7.6% at time of writing (13 May), the index has fallen 10.9%, according to data from FE fundinfo. However, this is including a 25.7% freefall within the first four weeks of lockdown measures being first put in place. Between 16 March and now, however, the index has bounced back by almost 20%. Jerome Powell disregards potential depression; reiterates commitment to US economy According to data from Refinitiv, the US index's Shiller P/E ratio - which measures its average inflation-adjusted earnings from the ...