Valuations are very strong and concentrated, says former Dallas Fed President Richard Fisher

Market Valuation - Equities are considered "fairly highly valued" [1] - Current market valuations are strong, concentrated in a few companies, and perceived as richly priced, if not overpriced [4] - S&P experienced a tenfold increase from its bottom at 666 to 6,666 [3] Monetary Policy & Economic Outlook - The Fed faces conflicting signals regarding employment downside risk and inflation upside risk [5][6] - A quarter-point rate cut was implemented due to uncertainty, with potential for further cuts [6] - The Fed is navigating a challenging situation with no risk-free path [5] - The industry is doing the right thing by moving at the margin to deal with risk, further rate cuts are possible [8] Labor Market & Business Concerns - Small and medium-sized businesses (SMBs) are not complaining about access to credit, but are concerned about labor availability and retention [8][9] - Immigration policies are making labor relations difficult and more expensive for SMBs [10] - SMBs are not primarily worried about inflation yet, but have concerns going forward [10] - Percentage of firms planning to raise average selling prices fell to 21%, a low not seen since October of last year [12]