Pimco’s Browne Says US Stocks Ignore Threats of Recession, Banks
- Rates traders are sending investors a warning on growth
- ‘Hidden risks’ on regional banks will show up later this year
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There’s a rally in the US bond market and there’s a rally in the US stock market. Pimco’s Erin Browne wants investors to understand only one of them is likely to continue.
“Rates and equities are singing from different hymn books,” the portfolio manager for multi-asset strategies at Pacific Investment Management Co. told Bloomberg Television’s The Open on Tuesday. Both markets are pricing in accelerated rate cuts by the Federal Reserve this year and into 2024, which for rates traders means “we’re heading toward a recession.”