While Wall Street is enjoying a positive start to the year following Trump's inauguration, experts warn of potential disappointment due to stretched valuations and rising bond yields. The S&P 500 has surged, fueled by optimism surrounding Trump's pro-growth policies, but analysts caution that the rally may be unsustainable in the near term.
The mood on Wall Street has been decidedly buoyant heading into and following President Donald Trump 's inauguration, but that could open the market up to some disappointment. The S & P 500 is coming off its best week since November, after what was a rocky start to the year, as Trump's return to the White House lifted those parts of the market poised to benefit most from his pro-growth policies. Risk assets such as bitcoin popped, as did oil stocks and small caps.
With more bullish expectations there is risk of disappointment and some reversal for some of those," Christian Mueller-Glissmann, Goldman Sachs' head of asset allocation research, wrote on Tuesday. "The probability of S & P 500 drawdown has picked up due to higher valuations, less negative inflation momentum and increased political uncertainty," Mueller-Glissmann added.
STOCK MARKET WALL STREET DONALD TRUMP VALUATION BOND YIELDS
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