Pimco Reloads Stock Shorts, Says Tech Is ‘Canary in Coal Mine’

Browne warns that optimism built on Fed is unsustainable
A bottom may not form until earnings expectations reset lower

Erin Browne, multi-asset strategy portfolio manager at Pacific Investment Management Co. (Pimco), says the Federal Reserve is “nowhere close to cutting rates.” She speaks during an interview on “Bloomberg Markets.”Source: Bloomberg

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By Lu Wang (News) and Alix Steel

October 26, 2022 at 3:54 PM UTC

This article is for subscribers only.

Pacific Investment Management Co. raised bearish stock wagers as the market bounced back, according to portfolio manager Erin Browne, who warns that the latest earnings woes from tech giants are a sign of what’s coming next for Wall Street.

“Over the last week or so, we’ve been resetting shorts at higher levels, taking that as an opportunity to get more underweight stocks,” Browne told Bloomberg TV. “I don’t think yet that we have received the all-clear signal,” she added. “What I think tech is highlighting now is they’re the canary in the coal mine for the broad market.”