Long term, investors should be prepared for the high likelihood of a recession in 2023 or 2024, said Roger Ferguson, former CEO of TIAA and former Federal Reserve vice chairman.However, investing is a long-term activity. Therefore, investors should look for four or five major trends that will create investable opportunities for the next decade or so, as well as markets that need disruption, he pointed out.
"The Fed is going to work really hard to get [inflation] down. I think even their own projection doesn't have them getting there as quickly as they'd like," he said. For those who might be scared off from stocks because of that inflationary pressure or the possibility of a recession, Erdoes pointed out that history provides the answer on why you should stick with investing. It is usually within a 10-day cycle that you have your best returns, she said. Therefore, missing the best 10 days in any market environment will cut your returns in half, she added.
"When you think about people who are responsible for very large sums of money, everybody in this room, it is irresponsible to be passive in what you're doing right now," she said.