Jim Bianco is president and macro strategist for Bianco Research, LLC. In this episode – recorded from the floor of our Investment Masters Symposium Sarasota earlier in December – he outlines the good news...the better news...and the “not so good” news about higher interest rates.
Specifically, the long-time financial markets and policy expert explains that investors, governments, companies, borrowers, and retirees will all see different impacts from this new “normal” environment. In his view, it’s not a “doom and gloom” world – even as there will be some clear winners and losers from a return to 2% “real” rates and 5%-6% nominal ones. Jim goes on to discuss the other ways the economic backdrop has changed, including the newfound power labor has relative to company managements.
He then pivots to the market and investment implications of these long-term, big-picture shifts. Among them: The “Index Era” will gradually fade, while active management and quality stock picking will prove increasingly rewarding. Stated another way, the markets might generate “milquetoast” returns. But investors willing to put in the work and identify key winners in sectors like technology or energy could generate much stronger ones.
I hope you enjoy the segment. Then be sure to check out the details of our 2024 MoneyShow/TradersEXPO Las Vegas, set for Feb. 21-23, at the Paris Las Vegas. You can get the very latest insights from experts like Jim there. Click here to register.
I’ll be back in touch with my next podcast in a week!