From Yahoo Finance: 2025-06-14 15:13:00

Veteran fund manager warns of stock market risks despite recent gains. S&P 500 up 20%, Nasdaq up 27% since tariff pause. Concerns over frothy valuations and potential pullback. Doug Kass cites red flags for caution, including high P/E ratios. Market sentiment shifts from “Extreme Fear” to “Greed.” Bank of America analysts warn of high valuations, 21x forward earnings, 35% above average.

Doug Kass, with decades of market experience, issues stock market warning. Warns equities are unattractive, little room for disappointment. Concerns include ongoing trade negotiations, potential inflation rise, threats to market rally. Market outlook should be cautious. Political and geopolitical uncertainties may impact global markets. Veteran fund manager David Kass issues a dire warning about the stock market, citing multiple cracks in the foundation of the bull market that are being ignored. With the S&P 500 Index at around 6000, the downside risk for equities far outweighs the potential rewards. Valuations are inflated, and corporate profit growth is expected to decelerate. The equity risk premium is at a two-decade low, indicating a possible slide in equities ahead. Kass advises investors with short-term horizons to reduce risk and increase cash reserves to capitalize on potential weaknesses in the market.



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