JPMorgan estimates the S&P 500’s fair value at around 5400, implying the index is about 6% overvalued.
However, the bank views this premium as modest and likely to be offset by earnings growth and strong U.S. liquidity trends.
Using a 4.8% discount rate—just below the 10-year average—JPMorgan says valuations are slightly elevated but not alarming. The bank cautions against relying on headline P/E ratios, urging investors to consider where the market sits in the earnings cycle.
Looking ahead, the April 2 tariff announcement remains a key risk, though JPMorgan notes recent investor flows suggest expectations for a benign outcome. Despite valuation concerns, the bank believes accelerating money supply and corporate earnings could continue to support equities through 2025.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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