“Massive Deviation” Between The Markets & The Economy | Lance Roberts & Adam Taggart

“Massive Deviation” Between The Markets & The Economy | Lance Roberts & Adam Taggart

There is a massive deviation between stock valuations and earnings growth: growth in the former is far outpacing the latter.
This is unsustainable warns portfolio manager Lance Roberts.
And unless economic growth suddenly surges (and no catalyst for that is on the radar), then asset prices will need to come down in order to bring the ratio back into balance.
And with GDP growth coming in at1.4% in Q1 and currently at 1.7% (and slowing) here in Q2, asset price reduction indeed seems like the more probable outcome.
Credit to : Adam Taggart | Thoughtful Money