Dr. Chuck Lieberman, Co-Founder and Chief Investment Officer of Advisors Capital Management, joined Bloomberg Radio to discuss the outlook for stocks and bonds amid strong corporate earnings, growing investment in artificial intelligence, geopolitical uncertainty surrounding Iran, and evolving inflation and interest-rate expectations. Lieberman shared why he remains positive on the economic and equity-market outlook while taking a more cautious approach to longer-term fixed income.
Key Takeaways
Strong corporate profits continue to support the equity outlook: Lieberman pointed to record corporate profits and upward earnings revisions as important support for the market, noting that profit growth has outpaced stock-price gains and helped improve valuations.
AI opportunities extend beyond technology companies: As artificial intelligence continues to influence markets, Lieberman highlighted potential opportunities across hardware, software, utilities, and banks, including businesses that may benefit from increased power demand or greater operating efficiencies.
Inflation and geopolitical risks warrant caution in fixed income: Lieberman described the situation with Iran as an ongoing source of potential market volatility and said a tightening labor market could create renewed wage and inflation pressures. Against that backdrop, he expressed greater comfort with short- and intermediate-term maturities than with longer-term bonds.
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