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Wall St Week Ahead-Lofty valuations on US stocks a growing worry for investors

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. ....

Refinitiv Datastream , Anthony Saglimbene , Richard Chang , Michael Purves , Sameer Samana , Lewis Krauskopf , Ira Iosebashvili , Wells Fargo Investment Institute , Federal Reserve , Deutsche Bank , Goldman Sachs , Wall Street , Tallbacken Capital ,

US STOCKS: Lofty valuations a growing worry

US STOCKS: Lofty valuations a growing worry
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Wall St Week Ahead-Lofty valuations on US stocks a growing worry for investors

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. ....

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