Bloomberg Asharq hosted Naji Nehme, Chief Investment Officer at Petiole Asset Management AG, to discuss market fear as we enter a new phase for interest rates and inflation. Below are the highlights of the interview:
Markets are experiencing fear today as we transition to a new phase of rising interest rates and inflation, which leads investors to seek new ways to adapt to this phase.
Signs of economic recovery appeared when the threat of Covid-19 receded, but the latest lockdowns in China and geopolitical risks affected this recovery negatively.
The Federal Reserve is determined to control inflation and is planning to raise interest rates at least 0.5% in June.
We see no signs of a recession or bear market yet, and treasury bond spreads haven’t expanded enough to signal a recession.
Early warnings of a market recession appear about six months before it actually happens and affects economies. What is happening in markets today is due to the fear of recession.
Watch the full interview above.
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