The firm sees no immediate catalysts like surging interest rates or inflation to trigger a downturn.
AdvertisementInvestors worried that the stock market is overvalued shouldn't sell stocks, according to a Monday note from Piper Sandler.
AdvertisementWithout an imminent spike in interest rates, the unemployment rate, or inflation, the stock market should continue its upward trend even if it's overvalued, according to Kantrowitz.
AdvertisementKantrowitz recommends investors monitor credit spreads to determine whether there is fear in the stock market that could signal a period of negative equity returns going forward.
Tight credit spreads, a solid labor market, and continued GDP growth are all signals that investors should stay bullish, according to Kantrowitz, even if the stock market is slightly overvalued.
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