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Big ideas, bold actions.
That was the theme of the Yahoo Finance Investing conference, held live in New York City on Tuesday. The packed house has indeed got big ideas and bold moves. Especially as “Bond King” Jeffrey Gundlach on DoubleLine.
“The Magnificent Seven clearly tells me that the Magnificent Seven are the best performers in the coming recession,” Gundlach said, pointing to looming weakness in 2024 in popular stocks like Apple, Nvidia and Microsoft.
Gundlach added: “Whatever it is that leads to a recession, it has to lead the charge on the road. I’m going to get out of them.” “I would go into an equal balance basket as opposed to a market balance basket.”
If you didn’t get Gundlach’s message, he’s concerned about the outlook for the economy.
So are consumers, as seen in a new Yahoo Finance opinion piece by senior columnist Rick Newman at the event.
However, the C-suite was generally optimistic about 2024 – not too jazzed up, but not too gloomy. And despite the intended optimism (Shama Media CEO Kevin Mayer, an adviser to Disney CEO Bob Iger, Iger seemed optimistic about Disney’s turnaround), business detractors created some concerns throughout the day.
Check out the vibe in the C-suite as 2023 approaches…
Marriott CEO Anthony Capuno on high interest rates and real estate
“I think it’s a bit about the high interest rate environment and the expectations on the retail sector, there will be increased liquidity requirements on lenders. I’m worried about the office sector and I’m worried about the retail sector.”
Double Line Founder and CEO Jeffrey Gundlach on the economy
“We have a lot of major indicators that have been in a recession for a year plus. And so I think the Fed has stopped raising interest rates. I don’t think they’re going to do it again. That’s clearly the bond message. I’m more concerned about the concept of higher, longer-term rates. And not so much for the economy.” But if the economy starts to noticeably weaken, which seems to be happening in real time, the Fed will cut interest rates.
“I think so [the deficit] problem today. I don’t think it’s a problem after 30 years. I don’t know how the calendar is established, that we can decide on a day and say that things will go wrong. I think the day of reckoning is that we will be in sub-optimal growth for an extended period of time. You could even go a step further and say that if you don’t get your fiscal house in order, things will have an impact outside of the US and challenge your ability to grow the economy quickly enough to make sure the world is safe. .”
Economist Nuril Robini on the functions of the Federation
“The question is whether the economy will have a soft landing where you go back to 2% inflation with no recession, or will you have a soft and dense landing with 2% inflation and you’ll have a short and shallow recession. I say the jury is still out on that. The economy is soft right now.” It looks like a downward trend, but interest rates are higher and higher, the longer the economy slows down.
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