Inflation, recession risks remain, stocks are fully valued: Damodaran

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The 'Dean of Valuation' warns inflation and recession risks remain - and stocks may disappoint bulls in the second half

Conquering inflation won't be easy, a US recession could still strike, and stocks could disappoint bulls in the second half, Aswath Damodaran says.

"That last stretch getting inflation down from 3% to below 2% will be trench warfare, and we will be exposed to macro shocks that can create inflationary shocks," Damodaran said. "There are signs that the economy is cooling and it is again entirely possible that this turns into a slow-motion recession, as real estate succumbs to higher interest rates and consumers start retrenching," Damodaran said.

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