Investors Are Unprepared for Stock Shocks, Wells Fargo Strategist Warns
- Market is too confident in Fed rate cuts, strategist says
- Harvey expects volatility will pick up in first half of 2024
This article is for subscribers only.
The stock market is getting ahead of itself on bets the Federal Reserve’s fiscal tightening is over, according to Wells Fargo’s Chris Harvey.
“Tomorrow, we expect Chairman Powell to continue to emphasize ‘higher for longer’ and to try to dissuade the markets of near-term easing,” the head of US equity strategy at Wells Fargo Securities said in a phone interview ahead of the central bank rate decision Wednesday. “However, we doubt market players will have a change of heart regarding the timing of upcoming rate cuts.”