While we do not foresee an imminent end to the bull market in equities or rising bond yields, market returns are likely to be sub-par in the coming year considering that equity valuations are stretched, corporate profit growth has stalled and the outlook for the U.S. elections is uncertain.
At their annual series of economic forecast events, University of Virginia Darden School of Business Professor Alan Beckenstein and economist Nick Sargen offered their assessment of a momentum market underpinned in part by consumer spending and Federal Reserve action.