Investors are worried. Markets are volatile, inflation is elevated, and the Fed is getting aggressive in lifting rates.
Based on our models, the markets are fairly valued. Not overvalued. Not undervalued. The direction from here depends on when the next recession arrives.
Yes, the Fed is getting tighter. Yes, stimulus spending is behind us. But jobs continue to grow, the economy continues to re-open, banks are well capitalized, and the service sector is booming.
The hurricane is not here yet. We expect growth in 2022. But it's time to prepare for the storm clouds on the horizon.
Click here to watch the latest Wesbury 101: Stocks are Fairly Valued
