NEW YORK, Aug. 30 (Xinhua) -- U.S. stock market seems to have another bullish year, according to Harold J. Newman, the founder of Harold J. Newman Capital LLC.
The fundamentals of the U.S. stock market are good, said Newman on Wednesday, adding that in the third and fourth quarters of 2018, companies are expected to see over 20 percent growth in operating results.
U.S. leading indices like the S&P 500 and Nasdaq Composite made consecutive record highs in recent days on a strong economy, good operating results and optimism from trade wars.
However, the market rectified on Thursday due to renewed concerns over new tariffs that could be imposed between the United States and China.
The stock market's bullish trend won't last much longer, as long-term interest rates would go up, reducing the value of future corporate profits and providing investors with an alternative to equities, Martin Feldstein, professor of economics at Harvard University and president emeritus of the National Bureau of Economic Research, said in an article issued on Aug. 28.
"The result will be a decline in share prices. I don't know when that will happen, but I am confident that it will," said Feldstein.
Regarding the progress in trade talks between the United States and Mexico, Newman said that now Canada faces pressures and has to find ways to resolve the issue, as Canada is heavily dependent on the United States.
Canada would resolve the issue in a short term, Newman said.
