Wealth Management — Feb 16, 2023
In the battle against inflation, central banks raise interest rates to cool demand. But as liquidity and labor optimism continue to support consumption, pressure is likely mounting for the Federal Reserve to keep rates higher for longer. That could weigh on earnings.
On CNBC, Wealth Management’s Lisa Shalett explains why this has the potential to create a boom-bust scenario with a 15% to 20% pullback for U.S. stocks from current levels—and how investors can prepare with short-duration fixed income, active stock picking and a highly diversified portfolio that stays away from the S&P 500 index.
Lisa Shalett is Morgan Stanley Wealth Management’s chief investment officer, a member of the Global Investment Committee and a regular contributor to CNBC, Bloomberg and other financial news outlets, where she helps sift the signal from the noise.
Visit Wealth Management Portfolio Insights for more market commentary and insights from Lisa and her team at Morgan Stanley.