Stock Rally That Keeps Going Could Be ‘Dangerous’ Right Now: Q&A
- Principal’s Shah sees US economic downturn in fourth quarter
- But it will be mild, short-lived, and not tough for consumers
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A stock rally that lasts for too long at this stage could be “dangerous” as it would ease financial conditions, boost inflation and push the Federal Reserve to keep tightening, according to Seema Shah, chief global strategist at Principal Asset Management.
“There is clearly a little froth in the market,” Shah said on the What Goes Up podcast. “We would anticipate that there’s going to be a bit of a pullback. Once you get that pullback, increase your exposure because I think this is a long-term trade.”