Powell had claimed the U.S. finds itself in "very early stages" of disinflation, or the rate at which inflation decreases, calling for a "bumpy" ride ahead. Auth responded to the chairman’s comments, saying it fits with the idea of a rocky inflation landing.
Commentary from Fed Chair Jerome Powell on Tuesday was in line with"our rocky landing idea," Federated Hermes CIO of equities Stephen Auth said on"Mornings with Maria" Wednesday. "We think we're getting the back half of this rocky landing, but we don't have the Fed cutting anytime soon. We're not sure when they stop. And we think the market's going to be kind of trading in a range here between 3,400 on the downside and 4,400 on the upside," Auth explained. "So we're telling investors: tune in to stocks, stay cautious, though, and stay defensive in stock portfolios.
While Americans won’t see a "harsh financial crisis" like 2007-08, Auth noted tech stocks are "doing terrible" and there’s more "negative surprises" to come in earnings season. "We think there's at least another leg out there," the CIO said. "So those stocks, which are still a big hunk of the market cap of the indices, we think have some more down legs in them and valuation wise are expensive. So we're leaning into defensive stocks here, dividend payers."
FUN FACT: Fox News is an entertainment company with 'News' in its name. None of the people who work for Fox News are journalists. They're entertainers. Hannity and crew are no different than Barney and Khloé Kardashian. That way they can't get sued for slinging fake news.