Slowing Inflation. Now What? Eddie Ghabour on FOX Business with Stuart Varney скачать в хорошем качестве

Slowing Inflation. Now What? Eddie Ghabour on FOX Business with Stuart Varney

KEY POV: The softer inflation data underscores our belief that we’re in a recession, and by the end of July, Treasury prices will be substantially higher on a YTD basis versus the market. Eddie Ghabour, Co-founder and CEO of KEY Advisors Wealth Management, joined Stuart Varney on FOX Business’ Varney & Co on Wednesday, April 12, after the latest inflation data came in lower than expected. Core inflation, which does not include food and gas, was up 5.6% year-over-year. The biggest driver was the cost of housing. The Fed meets again in May, and there is a 66% chance of a 25 basis-points increase, and we believe it will be the last change for a while. What does this mean for our investment strategy? Our long-term treasury ETFs have returned 7-9% this year, outperforming the S&P 500 during the same period. This is about a flight to safety for what we still believe will be a rough landing that will bring us into the territory of new lows. Either the stock market is right, or the bond market is right…they both cannot be right, and, in our opinion, the bond market is the safer bet. Because we believe that the soft inflation numbers further reinforce the fact that we’re in a recession, and we still don’t believe the market has priced in a recession. The cost of capital is still high, and liquidity is tight for corporate America and Small Businesses. This will put pressure on earnings and drive slower growth. Watch to learn more and let us know what you think!