So here come the big calls from the big bulls.

Photo attribution Mark Lennihan/AP

Photo attribution Mark Lennihan/AP

It's hard to end the year on a negative note, but that's not something you could accuse Wall Street of.

Although the current bull market in equities is close to eclipsing the rally which blew the dot com bubble in the 90's, Deutsche Bank believes current US market fundamentals support the gains so far seen, while Goldman Sachs believes the rally will continue for another 3 years. Watch the interview with Deutsche Bank's Binky Chadha

Right or wrong, these bullish prognostications will provide more fuel for the US equities rocket ship which has already been adequately fuelled by quantitative easing and the potential for US corporate tax cuts next year.

More commentators will no doubt follow before the year is out as many investors continue to swim naked in cheap money.

Now what? In the US, expect more large debt raisings (e.g. Tesla and Apple) along with takeovers to build wider moats and/or exploit value dislocations created by disruptive strategies (e.g. Qualcomm/Broadcom).

In Australia, expect continued disconnect from the technology dominated US markets (that is, a fairly boring and pedestrian ASX), but as the dollar remains soft, a resurgence of interest in domestic companies/assets which export in US dollars. This may or may not drive M&A in Australia as players in related sectors make more money/seek to diversify.

But, beware the irrational bull!

Mike

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