- Wall Street increasingly is talking about peak growth in both the economy and corporate earnings.
- Inflation is running at 30-year highs, while growth lately has been solid but a bit disappointing. Second-quarter GDP rose at a 6.5% annualized pace.
- Brimming investor optimism is flashing warning signs, according to Bank of America.
- However, a slowing economy doesn’t mean negative returns, and the current conditions may be pointing at nothing more than a cooling off.
Diminishing economic returns could mean diminishing stock market returns as the U.S. transitions to a post-pandemic economy.
Wall Street increasingly is talking about peak growth in both the economy and corporate earnings as a stimulus-fueled recovery gives way to more normalized patterns.
Congress and the Federal Reserve have provided trillions in funding and liquidity measures that soon either will dry up or at least begin evaporating, leaving investors to ponder what lies ahead with their portfolios.