Stretched valuations and diminished expectations of interest rate cuts make U.S. equities vulnerable to sell-offs, David Bahnsen, chief investment officer of The Bahnsen Group, said.
"Valuations are so stretched right now that anything less than perfection from economic data or geopolitical noise can create substantial and quick selloffs," he told International Business Times. "This market touchiness should not be confused with directional weakness, which we are not seeing right now, as markets have been strong all year despite substantial changes in Fed rate cut expectations and a mixed bag of returns for last year's so-called Magnificent 7."
