CIO Cuts Stock Exposure in Half as Rates Rise, Sees Risks Ahead for Stocks
-
CIO Stephen Mulholland is cutting his fund's stock exposure by 50% due to high interest rates and attractive Treasury yields.
-
Risk-free Treasurys now offer yields of 4-5%, drawing investors away from stocks.
-
Mulholland believes the economy will slow as the Fed keeps rates high, putting downward pressure on stocks.
-
Indicators show banks tightening lending standards as rates rise, potentially slowing business and housing activity.
-
Mulholland recommends investors with near-term liquidity needs move money to short-term Treasury bills as stocks face headwinds.