NEW YORK, June 23 (Reuters) - Some Wall Street banks are
sounding caution on the U.S. stock rally, warning that stretched
valuations have made equities more vulnerable to declines. The S&P 500.
US STOCKS: Lofty valuations a growing worry malaya.com.ph - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from malaya.com.ph Daily Mail and Mail on Sunday newspapers.
By Lewis Krauskopf NEW YORK (Reuters) - Some Wall Street banks are sounding caution on the U.S. stock rally, warning that stretched valuations have ma.
Wall Street banks are warning that US stock values are approaching overbought levels, making equities more vulnerable to declines. The S&P 500 now trades at 19 times its expected 12-months earnings, above its historic average of 15.6 times, according to Refinitiv Datastream; similar valuation levels have preceded periods of rocky performance. Catalysts that could cloud the outlook include unexpected weakness in economic growth, a more hawkish Federal Reserve, and a rebound in inflation, investors said. Despite this, some investors still believe the stock market rally could continue, but with a pullback coming from overbought levels.