Tech valuations aren’t sustainable, says Verdence CIO Megan Horneman

Market Sentiment and Valuation Concerns - Verdant's CIO expresses concern about complacency in the market, suggesting potential downside risk [3] - Tech names in the S&P 500 are trading at a 90% premium versus their historical average, indicating unsustainable valuations [4] - The market is fully pricing in gradual rate cuts by the Fed, which may not materialize [5] - The current market valuation leaves more room for downside than upside [6] Monetary Policy and Inflation - The market's expectation of consistent rate cuts by the Fed is a key concern [5] - The possibility of sticky inflation and the Fed being "pinned" could derail the rally [5] - The market may be overconfident that the Fed will be satisfied with a 3% or higher inflation rate [6] Investment Strategy - A 4% CD is favored over investing in the current market at record highs [1] - Profits may be vulnerable if market momentum slows down [3]