Bank of Montreal’s Global Asset Management Chief Investment Officer Sadiq Adatia told BNN Bloomberg in an interview on Monday that while markets may remain choppy in the first half of this year, a return to balance is already being seen despite economic uncertainty. While there has been a pullback in stocks because of persistent inflation, a decline in earnings and the risk of an economic slowdown, he points out that the anticipation of a slowdown in interest rate hikes will offset the losses.
Investors who stay in the market for the long term will stand to benefit from a possible rally on the back of improved economic conditions and the expected pause in rate hikes, he added. “You could play this defensively for the next three to six months on the exception of earnings decline, but if you get that pivot or any positive news coming on the economic front, the markets will have such a big upside movement— you don’t want to miss that,” Adatia said.
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