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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
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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.