![]() ![]() ![]() The higher rates go, the lower the present value of their future stream of earnings. "Interest rates rising, especially on the long end, plus the liquidity leaving the market and that's going to leave a lot less speculative energy for the very few stocks that appear in this realm." Lower rates tend to be good for growth stocks such as tech, as they rely on borrowing a lot of money to fuel their future growth, and are viewed as longer-duration assets. "So what happens when we get another rate hike? … What happens when the Treasury starts to remove liquidity? By issuing lots and lots of new treasury bills to replenish their coffers," he told CNBC. Christopher noted "a real strong bid" going into artificial intelligence and tech-related stocks, but said it will be bad news for such stocks when the Fed continues to raise rates. The rally has been a narrow-focused one, however, with gains driven by just a few major tech stocks. It is up nearly 13% so far this year, while the tech-heavy Nasdaq has soared 27%. indexes have rallied this year, with the S & P 500 hitting a new high for 2023 on Thursday. "Markets are too complacent in our opinion." History shows the S & P 500 doesn't bottom until, on average, six months after the first Fed rate cut, Christopher said. Don't chase this equity rally)," he wrote in notes sent to CNBC. "There is likely more downside risk in stocks at this point (a.k.a. He added that tighter credit conditions after the banking crisis is also adding to a slowdown in lending activity. The strategist also highlighted a number of ongoing problems in the economy: distress borrowing is on the rise, inventory levels are still too high in some segments, and the earnings stumble is not fully priced into the majority of cyclically oriented sectors. The central bank is next due to meet on June 13 and 14. "Even if the Fed stays on hold next week, we don't think the Fed stays on hold for very long - inflation is just too sticky." Christopher added that he does not believe the Fed will cut rates this year. "Markets have been trying to convince themselves that rates were going to come down, that the Fed and central banks around the world would not hike by as much as they have," he told CNBC's "Squawk Box Asia" on Thursday. Federal Reserve will cut rates, or even hold. Paul Christopher, head of global market strategy at the Wells Fargo Investment Institute, says he's not convinced that the U.S. There's a risk that stocks will go downhill from here, according to Wells Fargo's Paul Christopher, as he warned investors not to chase the current rally. ![]() Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Account fees (e.g., monthly service, overdraft) may apply to Wells Fargo account(s) with which you use Zelle ®.Best Debt Consolidation Loans for Bad Credit Your mobile carrier's message and data rates may apply. For more information, view the Zelle ® Transfer Service Addendum to the Wells Fargo Online Access Agreement. To send or receive money with a small business, both parties must be enrolled with Zelle ® directly through their financial institution’s online or mobile banking experience. Payment requests to persons not already enrolled with Zelle ® must be sent to an email address. The Request feature within Zelle ® is only available through Wells Fargo using a smartphone. Neither Wells Fargo nor Zelle ® offers a protection program for authorized payments made with Zelle ®. For your protection, Zelle ® should only be used for sending money to friends, family, or others you trust. Transactions between enrolled users typically occur in minutes. checking or savings account required to use Zelle ®. Once it’s set to Spanish, Wells Fargo Online will appear in Spanish on Wells Fargo-supported devices, and you will start receiving eligible alerts and other communications and notices in Spanish.Įnrollment with Zelle ® through Wells Fargo Online ® or Wells Fargo Business Online ® is required. Under your first name, tap Profile, settings.Use the radio button to select English or Spanish, then select Save.Use the arrow to expand the Welcome drop-down in the upper right of your screen.Use the radio button to select English or Spanish, then tap Save.Scroll to the Profile section and select Language Preference.Under your first name, tap Security & Profile.Open the Menu in the lower right of your screen.You’re prompted to select your language preference during enrollment in Wells Fargo Online and during the first-time experience in the Wells Fargo Mobile app.Īfter signing on to Wells Fargo Online, you can change your language preference at any time. You can set your language preference online, in person, or by calling 1-80. ![]()
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