Janus Henderson Macro Head Says Market Is Near Its Top but Cannot Say When
Michael Contopoulos, head of multi-asset macro investing at Janus Henderson Investors, said the market is nearing its top. He cannot say when the cycle will turn. He discussed the recent jump in interest rates and the health of the US economy on CNBCs Fast Money. Janus Henderson Sees a Late Cycle but a Healthy Economy The Federal Reserve voted 12-0 on Sept. 16 to raise rates by 25 basis points, its statement shows. That lifted the range to 3.75% to 4%. Discover more Financial literacy course Distributed Another Strategist Stays Bullish Contopoulos is watching for margin compression, slower earnings growth, wider corporate credit spreads and an inverted yield curve. Credit spreads measure the extra yield companies pay over Treasuries. An inverted curve occurs when short-term yields exceed long-term ones. Last Thursday, the 10-year Treasury yield reached 5.22% while the two-year hit 4.94%. He also said most artificial intelligence (AI) debt sold in the past six to 12 months trades below issue price. Contopoulos argued that synchronized global rate rises keep US yields elevated. Investors can sell Treasuries for better yields abroad. Japans 30-year bond yield hit a record 4.2% last week. Not every strategist agrees the top is near. Turtle Creek strategist David Spika argues stocks could still rally 5% to
