Posted 2/14/2024, 8:35:00 AM
S&P 500 Hits New Highs, But Rally May Continue amid Moderating Risks
- S&P 500 is hitting record highs, but rally may continue as markets are not overly expensive and inflation is declining
- Risks remain, including higher than expected inflation or more aggressive Fed rate hikes
- Investors should focus on long-term productivity trends and technological innovations driving future profits
- Fixed income still offers good income potential as yields exceed expected inflation
- Key things to watch potential for equity bubble, future trade/tax policy, commodity price impacts from electrification