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☆ A portfolio manager beating 99% of his peers this year breaks down why the market has another 15% to 20% of downside ahead — and shares the biggest mistake investors could make once the Fed begins to
▼ + stars: | 2022-10-17 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +7 min

Drawing from the dot-com crash, he believes the current bear market still has 15%-20% more downside. Abate also shared the biggest mistake investors could make once the Fed begins to ease once more. Today's bear market mirrors the dot-com crashPart of Abate's investment process involves drawing parallels between the current market and historical recessions. "I still think that we are in the midst of a bear market. Similarly, both bear markets were also kicked off by an "excessive period of poor allocation of investment capital," Abate said.

☆ British pound and gilts soar after Hunt rolls back tax cuts
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +9 min

Jeremy Hunt on Friday replaced Kwasi Kwarteng, who Prime Minister Liz Truss sacked following the so-called "mini-budget" on Sept. 23 that sent UK assets sliding. Hunt on Monday announced a series of tax changes that he said would raise 32 billion pounds ($36.19 billion) a year in extra revenues. STERLING: The pound rose against the dollar and the euro, gaining 1.1% and 0.7%, respectively , . So the UK is not the outlier when it comes to its monetary policy and its fiscal policy. STUART COLE, HEAD MACRO ECONOMIST, EQUITI CAPITAL, LONDON:"I think it would be a brave person to be buying sterling quite yet.

☆ 'Dr. Doom' Nouriel Roubini warns the world economy is in danger - as he predicts an imminent US recession plus more pain for stocks
▼ + stars: | 2022-10-14 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

Economics professor Nouriel Roubini warned the global economy faces a stagflationary debt crisis. Roubini, known as "Dr Doom", predicted an imminent US recession and more pressure on stocks and bonds. Roubini, an economics professor at NYU Stern, is nicknamed "Dr. Doom" for his dire predictions. As a result, Roubini expects a full-blown domestic recession by the end of this year. He emphasized that private and public debt, as a share of global GDP, has soared from 200% in 1999 to 350% today.

☆ Ray Dalio says his hedge fund Bridgewater Associates is up around 25% this year. He shares 2 ways investors should approach a market he says is due to drop another 20% — and an area he's bullish on lo
▼ + stars: | 2022-09-22 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Bridgewater Associates founder Ray Dalio said on Wednesday that stocks are likely to fall further. Given his down outlook, Dalio was asked how investors should approach the current environment, and gave two answers. The former shields investors from rising or falling inflation rates, while nominal bonds can lose money when considering inflation. Dalio also recommended that investors keep their portfolios well-balanced and diversified, and avoid timing the market. "The most important thing that you can do is have a well-balanced portfolio, not to market time, but diversify," Dalio said.

☆ The UK is burning through cash amid the energy crunch and risks stagflation unless it pushes through these growth hurdles, Mohamed El-Erian says
▼ + stars: | 2022-09-21 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The UK risks stagflation unless it can push past these hurdles to its economic growth, according to top economist Mohamed El-Erian. Hurdles included the European energy crisis and the government's flawed response to encouraging growth so far. The global economy is also slowing down, which means the UK's domestic growth will be hard-pressed. But it could spell trouble for the UK's economy growth, as the government will likely need to borrow more to keep providing aid. While measures have been taken to address the soaring cost of fossil fuels, the climate change agenda has taken a backseat, which could hinder economic growth in the future.

☆ The Fed raising rates to over 5% wouldn't be surprising, former Treasury Secretary Larry Summers says
▼ + stars: | 2022-09-20 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The Fed may raise its policy rate as high as 5%, former Treasury Secretary Larry Summers said. Despite the volatility that could bring to stocks, the Fed risks making a policy error if doesn't go far enought to contain inflation. "The Fed has to be prepared to stay the course," Summers warned. Economists think that will likely take a while, given that inflation is still flying sky-high at 8.3%. "So I think that lesson that in terms of minimizing the risk of a stagflationary catastrophe, the Fed has to be prepared to stay the course."

☆ Mohamed El-Erian has warned the Fed's rate hikes may fail to squash inflation - but could tank the US economy and job market anyway
▼ + stars: | 2022-09-19 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Mohamed El-Erian warned of slower global growth, stubborn inflation, and higher unemployment. The top economist pointed to signs of weaker demand and the likelihood of further Fed rate hikes. "Stagflation" describes a toxic combination of stagnant economic growth, elevated inflation, and rising joblessness. In El-Erian's view, the Fed's aggressive interest-rate hikes risk choking growth and driving up unemployment, while failing to temper price increases. Earlier in September, El-Erian warned that global growth has become more fragile thanks to Europe's energy crisis, China's continued lockdowns, and the US's high inflation and waning demand.

☆ This large cap fund is staying above water in this bear market by being the 'antithesis of ARK'
▼ + stars: | 2022-09-17 | by ( Sarah Min | ) www.cnbc.com time to read: +5 min

James Abate expects that his fund distinguished itself this year by maintaining a traditional bottom-up perspective on stocks. The flagship fund of Cathie Wood's ARK Invest, the ARK Innovation ETF , is down 28% this year. The fund manager maintains a concentrated portfolio of 35 to 50 of his best ideas. The fund manager also incorporates hedging techniques, specifically put options, from time to time to fortress the portfolio during periods of volatility, such as during the pandemic. Before founding Centre Asset Management in 2006, Abate started his career as a manager of valuation services at PriceWaterhouseCoopers in 1987, according to LinkedIn.

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