The Dow and S&P 500 continued their high runs for the sixth consecutive week and were up by 2 per cent by the end of the week, but the continued stock rally in the US and Japan is not necessarily cause for optimism, some analysts say.

These analysts take the rally-induced enthusiasm with a pinch of salt. For instance, CNBC’s Marc Faber pointed out that what we are seeing now in terms of investor behaviour was exactly what we saw four years ago when such short-lived enthusiasm ended badly.

“We’re up very substantially, I think investors who today rush into stocks should be reminded of that,” Faber observed. He said that the current rally will end in “a 20 per cent correction or a more nasty sell off at some point this year.”

While some express caution, the S&P 500 is nearing its all-time highs and the Nasdaq hiked up by 0.4 per cent, both driven by robust jobs data which inspired many investors to express faith in the economy’s ability to bounce back.