Biggest Bull On Wall Street Skeptical About Future Of Market
"US and global growth are a lot weaker than they would have been. And that is the main reason for why we remain skeptical on prospects for next year," said Binky Chadha, chief global strategist for Deutsche Bank, according to Business Insider.
Chadha has been extremely bullish on the markets but, lately, his opinion has changed. Less than a year ago, he was expecting the S&P to reach his target of 3,250 driven by a U.S.-China trade deal. Now, he is saying that a trade deal might not be enough to reverse the damage and prevent a recession.
"US growth has been slowing for quite a while. It's about 12, 13 months now. Global growth has been slowing for 18 months now," Chadha said. He hoped that the trade war would be over in the first half of 2019. He expects no significant stock market rally until a trade deal is signed.
Chadha is now recommending that investors put their money into government bonds. The yields of these bonds are currently low, but he predicts that they will soon rise in response to weakening economic data.
There is a lot of speculation around the future of the global economy as more data signaling a slowdown is released. Binky Chadha, previously bullish on the markets, is now instructing investors to put their money into government bonds due to uncertainty with the future of the global economy.