Valuation Concerns Are Never a Timing Tool

Bob Doll reviews last week’s market moves, sector performance, and corporate earnings while highlighting growing tensions between the White House and the Federal Reserve. Investors remain focused on the prospect of lower short-term rates even as inflation and policy uncertainty rise.

The episode argues that valuations are not a reliable market-timing tool and explains why ongoing Fed dovishness will sustain a liquidity-driven, risk-on environment for now, even as higher inflation may push long-term yields up (a bear steepening) and eventually pressure long-duration assets.

Key takeaways include upward GDP revisions, strengthening earnings, threats to Fed independence, tariff-driven headwinds, low volatility, dollar pressure, and potential small-cap leadership if dovish policy continues.

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