Rising inflation and deglobalization may impact US equity valuations, with risk of potential crash.

From Investing.com: 2025-04-21 01:01:00

In the last 25 years, US companies have benefited from globalization, leading to lower inflation and higher profitability. However, Goldman Sachs warns that rising inflation and lower profits due to deglobalization could impact US equity valuations. The Trump administration’s push for a new global trading system has accelerated deglobalization, causing uncertainty in the markets. Unusual movements in the dollar and treasury market suggest capital flight, with stocks also at risk. Analysts warn of a potential crash, citing rich valuations and unfavorable market conditions as red flags for investors.



Read more at Investing.com: High Valuations and Market Weakness Signal Growing Risk of Correction