The Federal Reserve's anti-inflation program will end in tears for some investors according to Guggenheim's investment chief.
According to CNBC, there's a good chance that the US central bank will over tighten as it tries to prove it's credibility.
The Guggenheim CIO said on "The Exchange" that they were going to push until something broke. The break will probably come through equity prices, but it could come in other places.
This will end in tears one day.
According to minerd, the S&P 500 could fall by 20% by mid- October.
The Fed should not hike rates for a long time, according to Minerd.
He said policymakers shouldn't look at inflation going forward because the money supply is contracting.
There's a chance that they try to prove their credibility too much.
Most economists think the Fed will raise interest rates by 75 basis points when it announces its policy decision on Wednesday. After August's hotter-than- expected inflation print, a small minority of people think there will be a bigger hike.
The rate is expected to increase this week. He called on policymakers to raise by 100 basis points so that the Fed doesn't hike as much.
He thinks 1% would be better than 0.05%. They should get it behind them because there's more hiking to come.
Morgan Stanley's Andrew Slimmon believes US inflation has peaked and could allow the Fed to end its rate-hiking program over the next few months.
When the Fed stops hiking, investors should buy stocks again, according to minerd.
He pointed out that we have never had a bottom in the market while the Fed is raising rates.
He said that the last part of the fourth-quarter could be a good time to enter the market.
"My view is that we're going to go three-quarters this meeting, half a point at the next meeting, a quarter at the December meeting, and that would be the end of it," he said.
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