High valuations, narrow AI rally cap upside for US equities in the medium term: Anand Rathi

After a strong rally driven largely by a few AI-focused stocks, US equities are facing concerns around high valuations and narrow market leadership. Anand Rathi believes the long-term outlook for US markets remains positive, but broad-based gains may be limited in the medium term, prompting investors to moderate return expectations and look for better risk-reward opportunities globally.