'Don't Fight The Fed And...China,' Says Wealth Manager As Global Markets Rise

Keith Lerner, the Co-Chief Investment Officer at Truist Wealth, has a word of advice for investors: “Don’t fight the trend and don’t fight the Fed.”

What Happened: Lerner emphasized that the global markets are currently reaching 52-week highs due to the actions of central banks and the Chinese stimulus, CNBC reported on Monday.

He pointed out that the markets have been on an upward trajectory over the past week, with the S&P, developed national markets, and emerging markets all hitting yearly highs. Lerner suggested that the old adage “Don’t fight the Fed” should be expanded.

“Now, don’t fight the Fed and don’t fight China or the Central Bank as well,” Lerner said.

Despite potential volatility due to the upcoming election and other factors, Lerner believes that the overall trend is upward, driven by global factors.

See Also: Inflation Data ‘Will Be Watched Like A Hawk’ Friday After Fed’s Interest Rate Cuts

When asked about investment trends, Lerner noted that U.S. large caps are currently more attractive than emerging markets and U.S. Treasuries. He also highlighted the potential for short-term gains in China, given its recent stimulus and market position.

Why It Matters: The recent market highs come on the heels of the Federal Reserve’s unexpected 0.5% interest rate cut, the first in over four years. This move was seen as a response to potential economic risks, including those related to the upcoming election.

China has been a key player in the global market, but new tensions have risen in recent times between Beijing and U.S. after President Joe Biden included multiple Chinese entities on its export control list. However, the Chinese stimulus and its market position have continued to drive global trends, as noted by Lerner.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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