The U.S. stock market has faced no shortage of worries, even as the S&P 500 index doubled its price since last year’s trough and has hit an unusual number of record highs in 2021.

“It is often said that bull markets climb a wall of worry, and today, there are many bricks stacked in that wall,” said Darrell Cronk, chief investment officer of Wells Fargo & Co.’s wealth and investment management division, in a note this week. He broke out Wells Fargo’s top 10 market risks, indicating which ones should “fade” and those investors should “follow closely” or potentially “fear.”

Inflation, labeled as a risk to follow, tops the list, with Cronk saying “there is little question that the target for ‘transitory’ is being elongated at least into next year.” He wrote that “underlying rates of core inflation remain near multi-decade highs — supply bottlenecks have boosted…

Read more…

Share.

Comments are closed.