Chief financial officers at big U.S. companies are entering 2020 on a cautious note, according to a survey released last week. The Deloitte CFO Signals Survey showed that while the corporate leaders see the economy as “good,” they anticipate that before the year is over, both economic and market conditions will slow.
As Wall Street continues to see record highs, 77 percent of the respondents said stocks are overvalued, the highest level in nearly two years. Just 4 percent said equities are undervalued, down from 10 percent in the previous reading.
While CFOs see a downturn, they’re hardly foreseeing a worst-case scenario. In fact, expectations for an outright recession fell to 3 percent in the fourth-quarter survey, down from 15 percent in the first-quarter 2019 survey. However, 97 percent say a slowdown already has begun or will start sometime in 2020.
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