Part 2/9:
Morgan highlighted that equity markets are currently undergoing a correction phase due to overheated valuations and heightened uncertainty. At the beginning of 2025, valuations were notably high, making a pullback somewhat expected. Coupled with this, an essential change is occurring regarding fiscal and monetary policies. The previous government interventions that topped expectations for fiscal and monetary stimulus are no longer viable due to persistent inflation rates exceeding the Federal Reserve's 2% target.