Fidelity Argues That S&P 500 Is Still Reasonably Priced

The S&P 500 (INDEXSP:.INX) has just crossed 2000 for the first time in its history, and while the milestone may be arbitrary it has given investors a reason to reconsider whether they think stocks are reasonably priced in light of the country’s weak economic recovery alongside a five-year bull market. But Fidelity growth manager Sonu Kalra argues that prices could keep going up for years and that it’s still a good time to buy stocks.

S&P 500 valuation remains pretty close to historical norms

“Valuation remains pretty close to historical norms, above the historical average but not dramatically above it,” says Kalra. “The U.S. economy continues to grow at...