Despite an encouraging upward revision of the U.S. economic growth during its third estimate release, a prominent economist is cautioning that significant risks persist, with stock market valuations reaching levels not seen since the dot-com era.
Mark Zandi, chief economist at Moody’s Analytics, stated that while last week’s annual GDP revisions “put a brighter hue on the economy’s performance,” he warned that recession risks “remain uncomfortably high”.
Recession Risks Remain ‘Uncomfortably High’
While Zandi acknowledged the revised GDP numbers suggest recession risks have “receded,” his overall outlook remains cautious.
He warned that although the economy’s performance and near-term prospects appear far from bleak, the combination of extremely high stock valuations and lingering economic risks presents a fragile picture moving forward.
“Recession risks appear to have receded with the revised GDP numbers, but they remain uncomfortably high,” he said in an X post.
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