Unlimited Funds’ co-founder and chief investment officer Bob Elliott fears both stock and bond investors may be disappointed this year if the Federal Reserve ends up forgoing widely forecast rate cuts due to stubborn inflationary pressures in the economy.
Stable or rising interest rates could keep bond prices in a bear market, the former Bridgewater exec explained. And stocks may not be able to meet Wall Street’s lofty forecasts without some profit-juicing Fed policy. Analysts are expecting a more than 11% jump in S&P 500 earnings this year, according to FactSet data.
