Posted 2/23/2024, 10:38:16 PM
Investor Euphoria Clashes with Worries of Overvalued Stocks and Unreliable Economic Signals
- Investors are euphoric due to upbeat economic data like strong jobs, fading inflation, and AI boom
- But optimists are counting on incompatible outcomes - strong economy AND falling rates
- Markets rely heavily on a few big tech stock winners that may disappoint
- US stocks are very expensive historically, raising "lost decade" worries
- Mixed signals on US economy outlook, with reliable indicators not working
