Jonathan Golub said in a CNBC interview that the Federal Reserve will stop hiking interest rates in the spring and cause a huge surge in stock prices.
The breakeven rate is a measure of inflation expectations. The gauge shows that the consumer price index will fall below the Fed's 2% target rate by the year's end.
Goods inflation peaked in March and has slowed over the last six months. Gas prices are falling and food costs are going down.
He said that the data shows that it is showing up in the data.
Golub made a bullish call on the stock market. He said that the cost of corporate borrowing is still reasonable even though interest rates are going up.
He said that stocks are trading at attractive prices.
There's more upside from PE multiples because the valuations on the market are between fair and inexpensive.
According to Golub, there is a chance of a huge stock-market rally in the first quarter of next year.
He said investors expect the Fed to signal an end to interest rate hikes soon.
He said that the stock market would take off if they did that.
Golub warned recently that the market's inflation expectations were plunging and that the Fed was at risk of choking the economy with its rate hikes.
If inflation is going in the right direction, why would the Fed drive us into a recession, killing millions of jobs?
The Fed will keep repeating its pledge to do whatever it takes to crush inflation because changing its tune too quickly could light a fire under the economy and cause prices to go up again.
Bank of America says to buy these 5 real estate stocks that will resist inflation and beat earnings forecasts, even as the economy teeters on the edge of a hard landing or recession.
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