Peter Berezin, chief global strategist at BCA Research, discusses with David Lin, anchor for Kitco News, the likelihood of the economy slumping back into a recession and a hyperinflationary scenario hitting the U.S.
Berezin notes that the stock market is currently “bubbly” and explains the conditions necessary for this bubble to pop.
“We are in a bubbly phase, I’ll absolutely admit it, but this bubbly phase is not going to end until we have turn towards hawkishness from the Fed and that’s not in the cards, at least for the next few months,” Berezin said.
Prior to joining BCA Research, Berezin was a researcher at the International Monetary Fund and served as the senior global economist at Goldman Sachs.
Berezin said that although economic growth is peaking, it is peaking “from a very high level” and while growth is still strong, it is ideal to be positioned in stocks.
“You generally want to stay bullish on stocks if growth is strong, and growth is still strong,” he said.
On inflation, Berezin said that price surges are indeed transitory, and the highest inflation reading since the financial crisis of 2008 was due to temporary base effects, not as a result of monetary or fiscal policies.
“What I think it’s due to is a lot of temporary factors”, he said. “About half of that 5% [increase in headline CPI] is simply due to base effects. Prices went down during the pandemic, now they’re recovering to more normal levels.
For more information on Peter’s asset allocation preferences, watch the video above. Follow David Lin on Twitter @davidlin_TV (https://twitter.com/davidlin_TV).
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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