Market Valuation - The current equity market is perceived as "fairly highly valued," with many experts agreeing that valuations are at least "richly priced" if not "overpriced" [4][5][6] Federal Reserve Actions - The Federal Reserve is navigating a challenging environment with conflicting signals regarding employment and inflation risks, indicating that there is no risk-free path forward [5][6] - A recent quarter-point rate cut was made due to uncertainty, with the possibility of further cuts being considered, although they may not be significant [6][8] Small and Medium-Sized Enterprises (SMEs) - The National Federation of Independent Business (NFIB) surveys indicate that SMEs, which create 80% of jobs in America, are not currently concerned about access to credit, but are worried about labor availability and retention costs [8][9][10] - Immigration policies are cited as a factor complicating labor relations for these businesses, leading to increased costs [10][11] Pricing and Inflation Concerns - The percentage of firms planning to raise average selling prices has dropped to 21%, the lowest since October of the previous year, suggesting a potential easing of inflationary pressures [12] - There is uncertainty regarding how companies will respond to cost changes and whether they will absorb costs or pass them on to consumers [13]