Markets Insider: The Fed is Quietly Signaling That Stocks are Overvalued and a Recession is Almost Certain, Top Economist David Rosenberg Says
Article by Theron Mohamed in Markets Insider
Investors sent the Dow to a record high on Wednesday after the Federal Reserve signaled the inflation threat is fading, and it expects to cut interest rates three times in 2024. They may be celebrating too soon, David Rosenberg has warned.
Rosenberg, a veteran economist and the president of Rosenberg Research, noted in a pair of X posts on Wednesday that the Fed's latest growth projection suggests stocks are overpriced and a recession is virtually guaranteed.
“The Fed is calling for a tepid +3.8% nominal GDP growth next year, but the stock market is pricing in +10% EPS growth. Both can’t be right.” ......