Markets at Record Highs But Investors Remain Cautious Amid Mixed Signals on Rates and Growth
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Tom Lee says investors are "uncomfortably underinvested" based on margin debt and cash levels, so dips are buying opportunities.
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Valuations are stretched to some extent, but hedge fund positioning and sentiment measures don't fully capture wealthy individuals' conservative positioning.
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Inflation reports have spooked investors by suggesting rate cuts may not be imminent. Market reversed after inflation data.
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Morgan Stanley analyst warns that easy financial conditions, AI excitement are driving surge despite high rates and negative earnings revisions.
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S&P 500 hit record highs this week but retreated on concerns Fed may have to start rate cuts by June if inflation remains contained.