Strategist: Fed must spur recession to kill 'zombie' economy before investors buy stocks

• The Fed needs to "kill the zombie" economy with high rates that induce a recession before investors buy stocks, says strategist Tony Dwyer.

• Dwyer points to signs of economic weakness like low unemployment partly due to low survey response rates.

• Earnings growth was negative in 2023 if you exclude the "Magnificent Seven" mega-cap tech stocks.

• Small-cap stocks have underperformed the S&P 500, indicating parts of the market are struggling.

• Dwyer says the opportunity to buy will come when employment worsens, forcing the Fed to cut rates and spurring worries about the economy.