Investors appear unconcerned about market risks even though stocks are priced for perfection, Crosssmark Global Investments CEO and Chief Investment Officer Bob Doll suggested in his weekly commentary Monday.
"Asset prices reflect undue complacency about the outlook, despite a typically supportive economic growth and policy backdrop," Doll wrote.
"The AI theme is in full-blown extrapolation mode. Elevated equity valuations and tight credit spreads indicate that investors expect an optimistic future for the corporate sector.
"Gold, cryptocurrencies, and private credit have been floating on buoyant global liquidity. Even safe-haven bonds have produced solid returns this year, with investors confident that inflation will stay tame and the Fed will reduce interest rates substantially in the year ahead. Capital markets appear priced for permanent perfection. Such conditions cannot last indefinitely," he cautioned.
While the portfolio manager hasn't yet issued his official 2026 predictions, he provided a glimpse into his expectations for next year and beyond. Here are 6 market and economic developments that Doll is forecasting.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.