A recession is all but inevitable for the U.S. and investors should be playing defense in that kind of environment, according to the head of the TCW Group.
"We are going to have a recession, because that's the way the world works," Katie Koch, CEO of the firm with $210 billion under management, said Thursday at CNBC's "Delivering Alpha" conference.
Higher rates have long been thought to work with lag effects, the timing of which is uncertain and dependent on a variety of factors.
"I do think it pays to be patient and wait to see higher rates work their way through the system," Koch said.
"We haven't seen the pain of higher rates, but it's coming."
Persons:
Katie Koch, Koch
Organizations:
U.S, TCW, Alpha
Locations:
U.S