Stocks have floated higher as Wall Street dials back its recession forecasts. Some investors aren’t ready to call the all-clear.
They point to worrying economic signals, lofty equity valuations and the possibility that the Federal Reserve continues raising interest rates or keeps them elevated longer than the market anticipates. The S&P 500, meanwhile, has advanced 19% this year even as analysts expect 2023 corporate earnings to barely inch up.
“There’s not a lot of leeway for bad news right now in equities,” said Mike Mullaney, director of global markets research at Boston Partners.
Read the full story on The Wall Street Journal here.