Aswath Damodaran: Next 2-3 months will show the market's steady level

Market Valuation & Expectations - The market initially overreacted to potential economic downturns, then swung too far in the opposite direction, expecting overly positive outcomes [1][2] - The market's current valuation of certain secular growth stocks, particularly the "Magnificent Seven," may be unsustainable given economic realities and company earnings potential [3][4] - From April 8th, the Mag 7 stocks initially lost almost 20% of their market cap, then recovered and added trillions of dollars [3][4] Economic Outlook - The economy's performance has been better than initially feared, but not as strong as recent optimism suggests, leading to market volatility based on fluctuating reports [5][6] - Economic reports are expected to continue fluctuating between optimistic and pessimistic views, causing market whipsaws [6] Nvidia's Valuation - Nvidia's valuation is currently receiving a "super premium," with market expectations potentially exceeding the company's ability to deliver [8][9] - Nvidia is projected to generate $250 billion (a quarter of a trillion dollars) in revenue next year, with half of that becoming net profit [7]