Despite continued uncertainty over the near-term direction of the stock market, Carlyle Group co-founder David Rubenstein said Thursday that investors should forget about timing the stock market’s bottom and take a longer view. term.
Talk to CNBC, co-founder and co-chairman of private equity firm The Carlyle Group, also predicted that trading will remain choppy in 2022 but could see some momentum as the economy returns to more stable ground in 2023.
“I think the markets will probably be pretty much where they are for a while, but I think early next year I think by then you’ll start to see some improvement in the market. economy in general,” he said.
Turning to the current market, Rubenstein said investors still face hawkish Federal Reserve policy, with a consensus forming that policymakers are “serious about inflation” and will likely hold rates. high in 2023. He added that markets are “potentially overreacting” to China’s COVID-related lockdowns.
“When the market has an idea in mind, it runs with it for several days,” he said.
On the economy, Rubenstein argued that it is “not clear that we are entering a recession” and predicted that third-quarter GDP statistics will likely show economic growth.
Providing more detailed market commentary, Rubenstein argued that the June lows for the stock market “probably” mark a low for this cycle. That said, he added that he “don’t really worry about the bottom or the top” because he usually has an investment horizon of at least five years.
“The greatest fortunes are often made in the world of investing when prices are low, people run away, and you can buy things cheap,” he said.
Rubenstein is not the only expert to take a long-term view of the current market situation. Find out why Defiance ETF CEO Sylvia Jablonski advocates for “old tech generals” like Apple in confusing times.