Centre’s CIO Says Alternative Needed Before Correction (Audio)

James Abate, managing director and chief investment officer of Centre Asset Management, says he’s looking for a ‘last gasp’ rally for U.S. equities before a correction. He says the catalyst may be the Federal Reserve raising rates next year, and the 10-year Treasury yield eventually going to 4 percent on higher inflation expectations. Abate says that would give investors an alternative to stocks, which he says is a necessary prerequisite for a correction. Meanwhile he says the Standard & Poor’s 500 Index could rise another 20% by year’s end. Abate explains why Centre favors International Flavors and Fragrances (IFF) and Archer-Daniels-Midland (ADM). Abate speaks with Bloomberg’s Kathleen Hays and Vonnie Quinn on Bloomberg Radio’s "The Hays Advantage”.

Running time 17:52

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