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Investors navigate market uncertainty around the Federal Reserve's next move and President-elect Donald Trump's return to the White House. The latest economic data suggested inflation is cooling, squashing investors' hopes for additional interest rate cuts.
Empower chief investment strategist Marta Norton joins Morning Brief with Seana Smith and Brad Smith to discuss her near-term market outlook.
Norton says Wall Street's earnings outlook holds "really high expectations relative to history," adding, "You're pairing that with valuations that also seem really stretched."
The strategist notes, "That doesn't necessarily mean a sell-off is imminent; valuations can remain high, and markets can grind higher, but it becomes more and more of a risk and kind of raises the possibility of a sell-off with that little margin of error [in terms] of execution or disappointment."
"What gives me some encouragement about this market is when we're taking a look at the economy, and I know we're on pins and needles as we follow inflation very closely here. But broadly speaking, the economy seems very healthy," she says. "The one concern is where sentiment is and disappointments on that sentiment and what that could mean."
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Watch the video above to learn more about the strategist's reading of the latest economic data, the incoming Trump administration, and more.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.