Thoughtful Money with Adam Taggart Will Coming Week's Inflation & Fed News Cause Markets To Pop Or Drop? | Lance Roberts & Adam Taggart
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Jun 8, 2024 
Portfolio manager Lance Roberts and Adam Taggart discuss the potential market reactions to upcoming CPI data and Fed guidance. They analyze the impact of slowing economy, potential rate cuts, and overvalued stock markets. Topics also include the GameStop saga, AI demand, and labor market outlook.
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Market Repricing
- Elevated earnings expectations make stocks vulnerable to economic slowdowns.
- Even without a recession, zero growth can necessitate a market repricing.
Earnings Deviations
- Wall Street's overly optimistic earnings estimates often get revised downwards.
- Current earnings deviations resemble the dot-com peak, suggesting potential overvaluation.
S&P 500 Deviation
- The S&P 500's deviation from its long-term growth trend is extreme.
- This suggests a likely price reversion, although the timing and magnitude are uncertain.