According to top BlackRock strategist Ben Powell, the “everything” bull market has ended due to inflation. Powell says investors will have to be more active in their decisions and will no longer be able to rely on stocks and other assets like they have been accustomed to. “…It’s going to be harder because inflation has gone from being no problem to a big problem…We’re going to have to be a bit more specific in where we’re investing, both by geography and asset class,” he told Bloomberg TV. In order to slow inflation, two Federal Reserve officials said Wednesday that higher rate hikes will likely be necessary. Atlanta Fed President Bostic believes the Fed needs to raise rates by 50 basis points and hold them at that level into 2024.
Business Insider/Zinya Salfiti
The ‘everything’ bull market is over now that inflation has gone from no problem to a big problem, BlackRock strategist says
Investors can no longer rely on stocks and other assets to keep logging gains like they used to, according to a top BlackRock strategist.
It’s become clear that inflation is not coming down as quickly as hoped, and that means the Federal Reserve might keep hiking interest rates, Ben Powell told Bloomberg TV on Tuesday.
“We can’t just be levered long everything — the ‘everything’ bull market sadly is over,” said Powell, chief APAC strategist at the BlackRock Investment Institute.
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Yahoo Finance/Jennifer Schonberger
Fed’s Bostic, Kashkari call for higher rates after ‘concerning’ inflation, jobs data
Two Federal Reserve officials speaking Wednesday said more aggressive interest rate hikes are likely necessary to slow inflation, as is the central bank keeping rates at elevated levels for some time.
Minneapolis Fed President Neel Kashkari said Wednesday he is remaining “open-minded” about whether the Fed should raise rates by 25 or 50 basis points at its next policy meeting on March 21-22. Markets currently expect a 25 basis point, or 0.25%, rate increase from the central bank.
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Fortune/Eleanor Pringle
Bank of America warns the Fed will hike rates to the ‘point of pain’ as experts say there’s no ‘serious signs’ the economy is under control
It seems the bullish confidence in America’s economy may take another hit after analysts warned the Fed could hike rates up to 5.5% –despite the fact they’re already sitting at a 16-year high.
It comes after a series of gloomy headlines for stock exchanges as February wound up: all three of the main U.S. equity benchmarks posted a loss in February as the Dow Jones sunk to its lowest level of the year to date.
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