Hedge Fund Manager Netting 29% Gain Sees S&P 500 Going Nowhere
- Harnisch at Peconic sees index trapped between 3,500 and 4,400
- Expects rates to stay high, dashing any hopes for a Fed pivot
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Hedge fund manager Bill Harnisch, who has scored a 29% return this year, credits most of the success to a prescient call on inflation 15 months ago. If his take on consumer prices turns out to be correct again, stocks may go nowhere in coming years.
The chief investment officer at Peconic Partners expects persistent pricing pressures to force the hands of the Federal Reserve in 2023, upsetting any hopes for a pivot. Stocks may rally periodically, he says, only to fade when reality sets in that rates will stay higher for longer, earnings are poised to fall and equities are far from cheap.