Buy US Treasuries to Prepare for 2023 Downturn, Citi Strategist Says
- He sees US profits down 10% even with rates below Fed forecast
- Higher rates could mean net loss of 2 million jobs during 2023
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Citigroup Inc.’s Steven Wieting says buying US Treasuries is the way to prepare for 2023, when an economic downturn will cut earnings and employment.
“We have been adding US Treasuries, not because the yield is some incredibly high, beautiful, inflation-adjusted level, but it’s a defensive asset that’s going to work for a period when the economy turns,” the chief investment strategist for Citi Global Wealth Investments told Bloomberg Surveillance on Monday. “And unfortunately we are heading for a turning point in the American economy, and I think we’ll do that well below the rates that the Fed is signaling for 2023.”