CIO’s Big Inflation Fear: ‘We All Begin to Make Bad Decisions’

David Bianco, chief investment officer for the Americas at DWS Group, an investment firm with more than $1 trillion under management, is worried about the damage that high inflation does to consumer purchasing power. Bad decisions that distort price signals inspire throughout the economy.

Bianco has a cautious outlook on the markets because of the risks of either a long period of destabilizing inflation or a recession caused by the Federal Reserve. He says the S&P 500 could fall back to 4,000 in the near term, a drop of about 10% from current levels, before it comes back to record highs. Bianco talked about the markets in the latest episode of What Goes Up. The highlights of the conversation were lightly edited. You can subscribe to the show on Apple Podcasts.