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Innovator Capital Management chief investment strategist Tim Urbanowicz joins Market Domination Overtime to discuss his outlook on inflation and earnings after President Trump called for lower interest rates at the World Economic Forum in Davos on Thursday.
Urbanowicz observes that bond yields (^TYX, ^TNX, ^FVX) have been climbing since the Federal Reserve began cutting interest rates in September. He states, "It is very clear to us that the bond market is screaming at the Fed to stop cutting interest rates."
He warns that continued rate cuts could potentially reignite inflationary pressures.
While he characterizes the current interest rate environment as a "threat" to markets (^DJI, ^IXIC, ^GSPC), Urbanowicz believes ultimately that "investors are going to look through that; they're going to focus on earnings." He adds, "If we look at the backdrop over the last year and the outlook moving forward, there's a lot to like."
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
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This post was written by Angel Smith