We Should ‘Fight the Fed' Because It Is Fallible, Investment Advisor Says

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Investors shouldn’t necessarily align their investment decisions with the Federal Reserve’s actions, according to Stephen Isaacs, investor at Alvine Capital.

Now, Stephens said it may be worth banking a U-turn from the Fed.

"If the data really changes, if the economic and credit situation crucially in the economy starts to really unravel then the Fed … will aggressively pivot. And bearing in mind the market is so far ahead in the assumptions of much high interest rates, that could have a very dramatic effect on asset prices," Stephens said.

The U.S. isn't out of the woods yet economically, Stephens said, with a number of"very difficult situations" coming in the months ahead. "I believe there could be a credit event [in that time]. There could be something that blows up … So that's the kind of thing I'm really looking for, I'm looking for a trigger point, and I think investors should be looking in that period to accumulate assets," Stephens said.

There has been much talk of a so-called Fed pivot over recent months, with Anastasia Amoroso, chief investment strategist at iCapital,CNBC's Hugh Son contributed to this report.

 

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