Skip to content
Markets
Economics

The Era of Inflation Has Ended — for Asset Prices on Wall Street

  • Fed message is keep hiking until something goes wrong: Pearkes
  • Investors waiting for prices to become cheaper as rates rise
Video player cover image
Morgan Stanley's Shalett Sees Opportunities Amid Market Carnage

As the Federal Reserve’s intensifying fight against inflation sinks every asset on Wall Street, investors are asking: Why buy now when things could get cheaper still? 

What started as a mild stock selloff this month has morphed into a deepening interest rate-spurred rout that’s wiped out virtually all of the summer gains in the S&P 500. Mouth-watering yields on corporate debt haven’t been enough to entice buyers while investors are increasingly parking their money in cash, waiting for more central bank-inflicted pain on the economy -- and a better buying opportunity. At the same time, the Citrix Systems Inc. debt debacle highlights the tighter climate for capital-raising for Corporate America, darkening the outlook for indebted companies in the stock market.