Piper Sandler Strategist Warns Of Overpriced Market As Investors Ignore Inflation Risk

Wall Street and Broadway sign inscription as seen downtown in Lower Manhattan, with headquarters of companies and financial institutions located there like the NYSE in NYC, USA in May 2023. According to a Wall Street strategist, multiples are moving up right now, not because earnings expectations are really going up, which was the case in the 1990s and indeed was part of the case in late 2020, or early 2021. NICOLAS ECONOMOU/ NURPHOTO VIA GETTY IMAGES.

Piper Sandler’s chief strategist Michael Kantrowitz says that the market is getting ahead of itself. 

“Investors have priced out the risk of inflation. That, in turn, has led to a rise in price multiples, or valuations, that have fueled the rally of the S&P 500,” said Kantrowitz in a resent presentation as reported by the Insider report.