How The Fed Can Push The S&P 500 Into A Correction

• The S&P 500 is currently overvalued with a 28 P/E ratio, making it vulnerable to a 7%-10% correction in the coming months.
• Market risks include a drop-off in consumer spending, sluggish economic growth, and delays in Federal Reserve rate cuts due to uncertainty.
• The S&P 500 has surged 14% in just over a month, and valuations do not price in the economic risks, which could trigger market volatility and profit-taking.
• Corrections are short-term; resolution in trade talks and Fed cuts later in 2025 could set up buying opportunities for 2026 gains.

From my authored article on SeekingAlpha.com.