EXCLUSIVE: Investing Ideas For A Tumultuous Market Focused On Interest Rates, Inflation

Charles Lieberman, chief investment officer at Advisors Capital Management, delved deep into the heart of today’s economic challenges Thursday at Benzinga’s “Road To Wealth In 2024” seminar.

Lieberman’s focus is razor-sharp on the critical issues of persistently high interest rates and their impact on inflation.

The Role Of Bonds

“Bonds are really a place to protect capital; they’re not a great investment,” Lieberman told the Benzinga seminar, emphasizing that bonds are not high-yield investments but rather a defensive plan for capital preservation. He stressed that bonds are important to a well-diversified investment portfolio, providing stability and security during uncertain times.

Labor Market’s Influence On Inflation

Regarding labor market trends and their influence on inflation, Lieberman stressed the need for substantial adjustments in the labor market to see a significant decrease in the Consumer Price Index (CPI).

He predicted that “CPI might only continue to fall with such changes,” indicating a challenging path ahead for inflation reduction.

Balancing Impacts In The Stock Market

Lieberman acknowledged the negative impact of higher rates on the stock market but balanced this with the positive influence of strong corporate profits, suggesting a support system for the stock market against potential rate-induced headwinds.

He named “homebuilders and energy as promising areas for investment,” highlighting the ongoing housing shortage as a boon for the homebuilding sector and identifying pipeline companies within the energy sector as beneficiaries of high production levels.

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Image: Dr. Charles Lieberman/Advisors Capital Buffik/Pixabay.