The tug of war between an early cycle economy and late cycle valuations

Trying to summarize where we are in markets keeps leading us to one analogy: tug of war. As an investor, it feels like that is the best way to describe what we have been facing over the last few months. On one side of the ledger, we have valuations at historically expensive levels and on the other side we have improving fundamentals, supportive technicals and accommodative monetary and fiscal policy. The question is, which one prevails?

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