Veteran Money Managers Bail on Stock Rally With Fed Hawks Flying
- Barclays Wealth reverses bullish position on rate skepticism
- L&G sells stocks, buys long-dated bonds to brace for recession
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Optimism about imminent rate cuts is stirring animal spirits — and unease — in equal measure at the end of a turbulent quarter in markets.
Prominent money managers have stopped chasing the latest stock rally, reasoning that expectations for easier Federal Reserve monetary policy are overblown with inflation still running hot. Should any rate cuts come, they would be intended to halt an economic downturn that also would bode poorly for equity returns, their thinking goes.