"With the current low levels of companies? earnings relative to their share prices, investors are obviously pricing in a distinct level of earnings growth going forward. Investors often tend to think of stock markets as either rising in anticipation of improving prospects and earnings, or falling, when they expect a poor near-term outlook for company profits.

"Given the recent sharp rise in stock market prices, we would not be surprised to see company earnings taking much longer to meet the levels that are being inferred by current share prices."

Editor's note: Shares are extremely volatile over the short- to medium-term. However, in the long-term they are not and consistently outperform all other asset classes. Click here to learn more...