Excerpts From ACM’s Chuck Lieberman on Bloomberg “Taking Stock” With Host Pimm Fox

By Pimm Fox

(Bloomberg: June 3, 2019) — When markets start playing an unfamiliar tune, it’s worth listening to an experienced money manager such as Chuck Lieberman, a founding member of Advisors Capital Management, former chief economist at Chase Bank and former head of the monetary analysis staff at the New York Fed. As you might expect, these views don’t exactly track with the market’s prevailing narratives.

Sectors: “Real estate investment trusts and utilities are both expensive, energy is outrageously cheap, banks are cheap and technology is going through a bit of an inventory cycle — though some technology stocks are great.”

U.S. Economy: “Economic growth of 2% is just fine. We can’t afford rapid growth because the job market is so hot. I think the bond market is out-to-lunch — and stock investors are obviously nervous — and for as long as Trump is president investors will have something to be nervous about, but a sell-off continues to be an opportunity.”

Mexico and Tariffs: “Something will be worked out, and so far, the comments from Mexico’s foreign minister reinforce that judgment. We didn’t sell. Of course, if the tariffs did happen, that would change our view. But it’s in the interest of both countries to avoid tariffs and resolve this.”

The Fed: “Without significant information that the economy is much weaker than it currently is, the Fed will not cut interest rates. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, has been arguing for rate cuts even when the economy was much stronger. I think that view is like a stopped clock. It makes no sense for the Fed to cut rates.”


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