In an interview with CNBC-TV18, Gary Schlossberg, Global Strategist, Wells Fargo Investment Institute, said valuations are attractive in the US market, which will provide a good opportunity to invest in quality stocks.
He said: “Current valuations, in our view, are attractive. Interest rates have a dampening effect on the market; in fact, they are still at historic lows, but you have economic uncertainty that could extend this period of volatility beyond most other geopolitical crises.
Regarding the impending interest rate hikes by the US Federal Reserve, Schlossberg believes there will be five interest rate hikes in CY22. “At this point the best bet is that we are on track for a quarter point hike; 5, maybe 6, but we think 5 rate hikes by the end of the year are a pretty good bet. It depends on how the economy performs,” he said.
On emerging markets (EM), he said they are currently vulnerable. “Emerging markets are currently vulnerable. You have the same valuation consideration, but there are a number of uncertainties,” Schlossberg said.
For the full interview, watch the attached video
First post: STI