Sky-high stock valuations are increasing the risk of 'disorderly corrections' that could rattle the economy, IMF warns

The IMF warns that elevated stock valuations risk causing financial market turbulence. US stocks, especially the S&P 500, are highly valued, posing correction risks. High concentration in AI stocks and household exposure could impact the economy. The IMF is warning that elevated stock valuations are putting both financial markets and the global economy at risk of some turbulence. "Valuation models indicate that risk asset prices are well above fundamentals, increasing the probability of disorderly ...