A bull market on borrowed time

The US Federal Reserve slashed interest rates by 0.5 percentage points in an attempt to prevent an economic slowdown, but recent data shows strong job growth and solid retail sales, prompting doubts about the necessity of the rate cut. Despite a rising US GDP and stock market “melt-up,” sceptics warn of overvalued stocks and predict underwhelming returns over the next decade due to high valuations and historical trends. While some remain bullish in the short term, long-term valuation signals suggest US stocks may lag behind global counterparts and bonds in the coming years.

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