T. Rowe Price Global Head of Multi-Asset and CIO Sébastien Page joins Market Domination Overtime to discuss possible deeper signs of stress in the market, how investors should position themselves, and why markets are "too focused on the Fed."
Sharing his economic outlook, Page explains that markets could be due for a pullback with economic data decelerating, as seen in PMIs. Looking 12 months ahead, however, Page says he expects healthy stocks and credit, a market due for broadening toward value stocks, and no recession.
The strategist also discusses his "be boring" approach, noting that between stocks and bonds right now, it is not the time to "load up on risk," nor is it the time to be entirely outside the market. He urges investors to think about their strategic asset allocation and risk tolerance in an environment where growth is decelerating but still high by pre-pandemic standards.
When asked how much of his outlook is dependent on the Federal Reserve’s policy in the next 12 months, Page says markets react to the Fed "way too much right now."
"We’re looking at a market that is sensitive to a 0.1% difference in a monthly inflation print," since the Fed is "telling everyone they’re going to be data dependent," he tells Yahoo Finance, highlighting that the economic data is "pretty random."
#stockmarket #investing #news
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
