Wall Street’s optimistic view of the market may be at risk. JPMorgan strategist Michael Cembalest expects a 10% to 15% correction in stocks, citing high valuations that are driving markets more than earnings growth. This comes after a strong performance in 2024, which has left investors with little room for error due to high valuations. Cembalest’s annual outlook highlights the challenges of maintaining momentum in the market.
Source: https://www.marketwatch.com/story/the-stock-market-rarely-scores-hat-tricks-this-strategist-fears-whats-next-e56ab91f