Posted 4/7/2024, 6:05:00 PM
Analysts Forecast Market Decline Despite Bull Run, Citing High Valuations and Geopolitical Uncertainty
- Valuations are getting stretched - the P/E ratio on the S&P 500 and top stocks like Microsoft are well above historical averages
- Interest rate cuts might not happen or be fewer than expected, contrary to Fed guidance and market expectations
- Geopolitical uncertainty around wars, China tensions, post-pandemic recovery, and 2024 election poses risks
- Wall Street analysts forecast 2% S&P 500 decline for rest of 2024, though targets set before recent rally
- No need to panic sell stocks based just on Wall Street's bearish tilt which has underestimated this bull market