The stock market is revising its valuation up due to more confidence the Federal Reserve is about done raising interest rates, which some investors believe will prevent the economy from entering a recession. This gives the market confidence that the earnings will not be as bad as expected, up slightly in 2023 and up more in 2024. The market is currently 17.5x the 2023 earnings estimates. Given the current level of the 10-Year Treasury, we believe an 18 multiple is possible, provided the economic conditions are positive.The market is currently 17.5x the 2023 earnings estimates. Given the current level of the 10-Year Treasury, we believe an 18 multiple is possible, provided the economic conditions are positive.

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