Investors under the regime of financial repression: Market expert
The Federal Reserve will not raise interest rates substantially in 2022 due to the midterm elections, says market expert Mark Yusko
During an interview on "Mornings with Maria" market expert Mark Yusko argued that investors have been under "the regime of financial repression" and he does not believe the Federal Reserve will raise interest rates as much as investors think they will.
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MARK YUSKO: I definitely do think that value will outperform growth this year and to your point, Maria. You know, we've been under the regime of financial repression for a long time. We had the loosest economic conditions in terms of Fed liquidity. Actually, global central bank liquidity, the ECB, BOJ, in history. And why do we still have emergency stimulus measures long after the emergency? Global financial crisis has been over for 13 years. In fact, we just launched an ETF called CSH to combat that. Savers are being punished at the expense of profligate spenders and borrowers, so there are very few places a saver can earn a good yield. And doing arbitrage in the SPAC market is one place that we think there's opportunity. I will also take the under. I just tweeted out this morning that, you know, we had Groundhog Day yesterday, and it was cloudy in DC and, you know, maybe it looks like we're going to six more weeks of 'Jerome the hawk' talking about raising rates. I think by spring, 'J the dove' will be back, and I'll take the way under on the number of rate hikes this year. I think they're going to have to back down. Look, it's a midterm election year. There's no chance they're going to raise rates the way the people think they are.
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