"I am getting increasingly queasy about the fact that the equity market keeps on pricing in a soft landing," Kelly told Business Insider in a recent interview, warning investors should "dial back risk." Although he also sees a "very nice soft landing path" for the economy with inflation fading and the labor market remaining resilient, stocks may have a valuation problem that makes them vulnerable to a market shock, he explained.
"At the very time when I think logic would dictate that investors take a little bit of risk off the table, they are passively allowing risk to accumulate on the table," he said, adding "there's no need to increase risk if you've got enough money to do the things that you want to do."
"I'm getting increasingly queasy about the fact that the equity market keeps pricing in a soft landing... Stocks may have a valuation problem that makes them vulnerable to a market shock," he cautioned, emphasizing the potential risks investors face by being overexposed to equities at this point.
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