“The Fed has been as slow to respond to inflation as they’ve ever been, and that is leaving me seriously negative on equities,” said David Wright, co-founder of $9.6 billion asset manager Sierra Investments.
Wright sees some parallels in the currency economic scenario to 1981, when high inflation forced the Fed to embark on a series of aggressive rate hikes, pushing the economy into recession. He has slashed his holding of equities and is moving into municipal bonds in preparation for a months-long bear market.
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The thoughts and opinions expressed in the segment are solely those of the person speaking as of 5/9/2022, and not necessarily those of Sierra and are provided for informational purposes only. Any opinion or estimate contained in this video is made on a general basis and is not to be relied upon by the listener as advice. The listener must make his/her own assessment of the relevance, accuracy, and adequacy of the information contained in this segment, and make such independent investigations as he/she may consider necessary or appropriate for the purpose of such assessment.
