Top economist Steve Hanke says stocks look expensive – and a recession is 'right around the corner'

• Stocks look "pretty pricey" and a recession is "right around the corner," Steve Hanke told Insider.
• The Johns Hopkins professor expects an economic slump in the first half of next year.
• Hanke sees inflation cooling, 10-year Treasury yields falling, and house prices staying afloat.

Stocks look expensive and a recession is likely to strike next year, says Steve Hanke.

The dangers of holding stocks instead of government bonds are typically offset by their superior projected returns.

However, Treasury yields have swelled and stock prices have surged in recent months, resulting in a negative equity risk premium — stocks are slated to return less than bonds despite being riskier assets.