Top investment strategist David Roche warns the Fed could burst a market ‘bubble’
As the S&P 500 notches record highs despite the backdrop of potential monetary tightening and the new delta Covid-19 variant, veteran investor David Roche says investors should be wary of the bubble bursting.
The flagship U.S. stock index on Friday chalked up its strongest week since February, despite the rapid spread of the highly contagious new variant and lingering concerns over whether the U.S. Federal Reserve will be forced to scale back its unprecedented stimulus program sooner than planned, with inflation running well above target.
The Fed recently surprised markets with a slightly hawkish pivot, upping its inflation expectations and bringing forward its interest rate hike schedule to indicate two raises in 2023.
Speaking to CNBC’s “Squawk Box Europe” on Monday, Roche, president of investment firm Independent Strategy, said current valuations were a “bubble.”
Reference: CNBC
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