Stocks are still expensive after the selloff, Barclays says

Investors have pushed stock prices from this year's peak, but it looks like more downward pressure needs to be applied as high inflation is looking to be more stubborn than expected, Barclays says.

Krishna said among his team's findings, roughly 40% of stocks in the S&P 500 were still trading above their 10-year median despite higher rates and inflation. "[Yet] equities insist on looking through to a full reversion of price pressures to pre-COVID levels, a dynamic that we see as increasingly unlikely in the near term," said Krishna."Furthermore, the equity risk premium continues to diverge meaningfully from underlying economic growth, underscoring the outsized optimism baked into valuations as the Fed is forced to press the inflation battle amid a slowing macro backdrop.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves premarket: Best Buy, Seagen, Union Pacific and moreShares of Union Pacific rose 9.5% after the company said CEO Lance Fritz would have a successor named this year.
Source: CNBC - 🏆 12. / 72 Read more »

Adani stocks drop as charm-offensive campaign begins: reportThe majority of Indian conglomerate Adani Group’s stocks fell on Monday as the company’s investor roadshow tour to appease investors begins in Asia today...
Source: MarketWatch - 🏆 3. / 97 Read more »

Asia stocks feel rate squeeze, dollar gets the liftAsian shares hit two-month lows on Monday as markets were forced to price in ever-loftier peaks for U.S. and European interest rates, slugging bonds globally and underpinning the dollar near multi-week highs. Garbage Biden is gonna crash the tiny tw island
Source: Reuters - 🏆 2. / 97 Read more »

Top Wall Street analysts expect these stocks to thrive despite macro pressuresTipRanks analyst ranking service pinpoints Wall Street's best-performing stocks, including Walmart & Datadog.
Source: CNBC - 🏆 12. / 72 Read more »

Reshoring is accelerating—These stocks should benefit as companies return to the U.S.A decade-long trend of companies returning to the U.S. is accelerating, and these stocks may benefit. 😄
Source: CNBC - 🏆 12. / 72 Read more »

Why the earnings recession hasn't hit stocks yet: DataTrekThe earnings recession has started - but here's why it hasn't hit stocks yet, according to DataTrek
Source: BusinessInsider - 🏆 729. / 51 Read more »