Growth figures of 4.1 percent can't hide the weak fundamentals in the U.S., analysts have warned CNBC, who have predicted an American recession in 2014 and a pullback of 30 percent on the Dow Jones Industrial Average.
Paul Gambles, managing partner at advisory firm MBMG International believes investors would be very brave to "chase the rally" as the extra funds provided by central banks have meant more and more retail investors have joined the move upwards.
"It looks like 1937 to me. We get a pullback because we have to get a pullback, we can't keep this stimulus going, it's stopped working. It's actually having a negative effect on the real economy now and the Fed can see that," he told CNBC Friday.
"(While) we've got a debt problem that's unaddressed. And (while) we've got a badly underperforming real economy, then expensive assets are not really a good place to be...I think it's more than likely that we're going to see a recession anyway in the States in the first half of 2014."
Gambles uses underlying economic fundamentals for his predictions. Third-quarter gross domestic product for the U.S. beat market expectations with a reading of 3.6 percent on an annualized basis. Data this week also showed that U.S. housing starts surged to their highest in nearly six years in November, pointing to a modest recovery.
"All the real fundamental economic data, if we ignore the headline official stats, that's painting a pretty horrible picture of wages and employment in the States," he said.