A senior portfolio supervisor for U.S. equities at Morgan Stanley Funding Administration was interviewed by Dow Jones.
On the Federal Open Market Committee (FOMC), expects solely gradual fee cuts this yr, to be “patient”.
- economic system seems robust
- the Fed has “time to be patient and make sure the true secular trend in inflation is lower”
- “inflation is running at a substantially lower rate” than the Fed Funds fee
- messaging from the Fed that cuts want to return sooner would make him slightly nervous as a result of it may imply the economic system could also be slowing sooner than he anticipated
On the outlook for US equities in 2024:
- expects it will likely be more difficult for U.S. shares to maintain rising in 2024 after the S&P 500’s leap in 2023
- however “the market will be higher this year because I think earnings will come through.”
- anticipating to see a broadening out of good points throughout shares, extra corporations collaborating within the inventory market’s rise.
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“I am of the camp that the economy will remain strong,”
- “I don’t hear signs of slowdown.”
- inventory market could also be extra risky than final yr
- “having some powder dry for an opportunity to step in” and shopping for throughout a pullback could also be “the right thing to do.”
