Part 2/8:
Cameron acknowledges that one of the major surprises of 2024 was the market's ability to soar back to 2021 highs, defying initial forecasts. While many expected constraints due to tightening Federal Reserve policies and elevated valuations, the market reacted differently. The rally in valuations, particularly across technology stocks, has led to questions about whether such trends can continue in 2025.
Cameron emphasized that if valuations begin to matter this year, it might translate into a year characterized by sideways movements. Conversely, if they are set aside entirely, we could be heading into bubble territory. This fundamental uncertainty about market dynamics poses questions about the future trajectory of valuations.