Home Markets This should be stock market investors’ biggest concern, strategist says

This should be stock market investors’ biggest concern, strategist says

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Stock valuations are still looking too lofty even as the major indices continue to retrench on the one-two punch of Omicron variant fears and a hawkish shift in Federal Reserve policy.

“I worry about markets because stock market valuations look relatively high,” said Torsten Slok, Apollo Global Management chief economist, on Yahoo Finance Live. (Apollo is the parent company of Yahoo Finance.) 

Slok said the potential for interest rate hikes from the Fed in 2022 could be a headwind to markets, especially in light of valuations that aren’t too far removed from record highs. 

Added Slok, “I think the economy would still be OK [if the Fed raises rates next year], but I am actually quite worried about the vulnerabilities and the sensitivities simply because valuations are so stretched.”

Berkshire Hathaway’s Charlie Munger voiced similar concerns on Friday about stock valuations, noting they are “crazier” than the dot-com bubble. 

Indeed, air continues to be…

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