Morningstar’s 2nd Quarter 2023 U.S. Stock Market Economic Outlook

Although the stock market is undervalued – it faces a rough road ahead. The effects of the second largest bank failure in U.S. history are reverberating throughout the markets. Tightening monetary policy is poised to begin taking its toll on the economy later this year. Inflation remains stubbornly above the Fed’s target. While volatility will likely stay elevated over the foreseeable future, once investors begin to see an upswing in leading economic indicators, we think the markets can begin a sustainable rally towards where we see fair value. Join Morningstar’s Dave Sekera, CFA, Chief U.S. Market Strategist and Preston Caldwell, Head of U.S. Economics as they review our analysis of the U.S. markets and economy. Learn why we view the U.S. equity market as undervalued, how we expect the U.S. economy will play out over the course of the year, and why we have an above consensus economic outlook over the long-term. We will: Break down our valuations and identify undervalued opportunities across categories, sectors, and stocks. Highlight investable long-term secular growth themes. Provide our forecasts for real U.S. GDP, inflation, and interest rates. In our market outlook, we utilize a bottom-up perspective to determine market valuation. By leveraging off of the 1,500 companies covered by Morningstar’s equity analysts, we identify which areas are undervalued versus which are overvalued. From growth stocks to value stocks and from small-cap to large-cap, we will identify where we see value today. Following the presentation, we will take as many questions from the audience as time allows. Presented by: Dave Sekera, CFA, Chief U.S. Market Strategist, Morningstar Preston Caldwell, Head of U.S. Economics, Morningstar Moderated by Susan Dziubinski, Investment Specialist, Morningstar This webinar has been accepted by the CFP® Board for one continuing education (CE) credit for CFP® designations.