Another top Wall Street strategist says last week's spectacular stock-market rally will soon fizzle.

Another Wall Street strategist is warning investors that last week’s U.S. stock-market advance likely won’t last.

“However, we believe that equities will soon revert back to an unattractive risk-reward as the Fed is set to remain higher for longer, valuations are rich, earnings expectations remain too optimistic, pricing power is waning, profit margins are at risk and the slowdown in topline growth is set to continue,” he added.

Investors have recently cheered survey data and other gauges, like the Federal Reserve’s latest Beige Book, that hint at slowing economic growth and possibly lower inflation. While that might seem counterintuitive to some, it’s driven by the logic that a modest economic slowdown would ultimately be good for markets by pushing the Fed to pivot back to cutting interest rates, helping to boost equities’ attractiveness relative to bonds and cash.

Perhaps exacerbating risks for stocks would be a Fed policy “mistake”, that is, the central bank keeping interest rates higher for longer than they probably should have. The resulting recession and hit to corporate earnings growth could create serious problems for stocks.

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