The benchmark S&P 500 equity index has reached new record highs and according to Saxo Bank head of equity strategy Peter Garnry, the current forward P/E is 17.8.

However Garnry says that a strong dollar and wage pressure are causing headwinds for growth among US companies.

It is difficult to see the S&P 500 post a 20% growth in earnings per share in 2017, he says.

Garnry believes that the valuation of the S&P 500 is stretched.