Stocks are under pressure as Treasury yields (^FVX, ^TNX, ^TYX) surge. Data suggests that inflation and yields could remain sticky due to proposed policies from President-elect Donald Trump's upcoming administration.
Mahoney Asset Management CEO Ken Mahoney joins Seana Smith and Madison Mills on Catalysts to discuss these trends and how investors could be impacted under Trump 2.0.
Mahoney explains, "There's a lot of tailwinds with this new administration ... it's going to be more pro-business, friendlier growth environment, regulation calming down a bit."
Despite these tailwinds, the ongoing tariff discussion and the surging Treasury yields are creating looming uncertainty for investors. In particular, Mahoney points out that the 10-year yield will likely breach 5% this year, which suggests that "inflation may raise its ugly head."
"A pro-growth agenda, while is great for earnings, is not great for inflation. And those are the crosscurrents that we're dealing with currently."
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Mahoney also suggests avoiding certain sectors and highlights three strong picks for investors: JP Morgan (JPM), Nvidia (NVDA), and Walmart (WMT).
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Josh Lynch