There won’t be a recession, but this market sell-off isn’t over yet


Blackstone’s Byron Wien believes the market decline isn’t completely over.

“I don’t think the overall market has cleansed itself enough to represent a broad buying opportunity. I think we have more work to do,” he said Friday on CNBC’s “Squawk Alley.” “I think we will end the year higher than we started, but I think we may not be done with this correction yet.”

Wien predicted on Jan. 2 that the market would have a 10 percent correction this year as one of his “Ten Surprises for 2018.” The S&P 500 fell officially into correction territory Thursday, down more than 10 percent from its record reached in January.

The investor thinks the market volatility is not a sign of an imminent recession. He cited strong economic numbers such as leading indicators and unemployment figures.

“We’ve been waiting for a 10 percent correction for over a year now. And now we’re having it, so it’s really not a surprise,” he said. “It’s a healthy cleansing. Is it the beginning of a bear market? I think not. The economy is revving along at a frequent pace. It looks like growth this year is going to be pretty close to 3 percent.”

The Wall Street veteran has been publishing his list of surprises since 1986. Wien defines a “surprise” as something the average investor would assign only a 33 percent chance of taking place, but which he thinks has a more than 50 percent chance of happening.

Wien is vice chairman of Blackstone’s Private Wealth Solutions group. Previously, he was the chief U.S. investment strategist at Morgan Stanley.

Source link

Products You May Like

Articles You May Like

The IRS is cracking down on this small business tax break. What it means for you
China says will ban new online lending platforms
Clare Bronfman, From Seagram heiress to defendant in Nxivm’s sex cult
Tips from a CEO and careers expert
Amazon’s advertising profits will surpass its AWS income by 2021: Piper

Leave a Reply

Your email address will not be published. Required fields are marked *