To some market vets, stocks are rallying like it's 1999

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The similarities between 1998-1999 and 20 years later are plentiful enough that some investors are pushing the idea that stocks can keep rising even with recession fears still hanging over the mark…

NEW YORK — The stock market has been so hot this year that it might need an ice-cold Fruitopia, or a Zima.

Steve Chiavarone, equity strategist at Federated Investors, says the S&P 500 may end the year at 3,100. That would be a 6.6% rise from Tuesday’s close and a nearly 32% leap from Christmas Eve, when recession fears were at their height. The action then is reminiscent of the market’s movements over the last seven months. Last winter, after setting its all-time high on Sept. 20, 2018, the S&P 500 plunged 19.8% on worries that a recession was on the way. But the Fed again helped put a floor under the stock market, this time by saying it may not raise rates at all in 2019 after seven increases the prior two years.

The market has prodded a parade of tech companies to sell their stock to regular investors for the first time. Lyft had its initial public offering last month, and Uber and other big names should follow shortly. Besides the less-exuberant nature of this rally — investors remain hesitant to put money into U.S. stock funds this year — another big difference is that stocks are not as expensive as they were in 1999, relative to their profits.

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