Noah Blackstein, Portfolio manager at Dynamic Funds, interviewed on CNBC.
“The Market got ‘carried away’ with 75 basis point rate hike” says Dynamic Funds’ Noah Blackstein in this interview on CNBC.
Were you surprised by what the Fed did yesterday? Was this your expectation ahead of hearing Jay Powell say that 75 basis points was not on the table right now?
- The market got really carried away with 75 basis points; we’re still starting quantitative tightening with at least two 50 basis point hikes coming
- Re: move in Treasury yields and mortgage rates year-to-date: mortgage rates are up almost 70% year-to-date, there is no way that a 70% move in mortgage rates isn’t going to have an impact but real estate has a much longer lag than stocks
- “In the relative asset game, mortgages and housing have a much larger and more significant impact on the overall economy; dialing it back a little bit is not unwarranted and being a little more data dependent is certainly not unwarranted at all”
The markets have moved significantly over the last several days. You saw a nine hundred points plus move yesterday, and that was the third day in a row of gains for the markets. But it really just got us back to last Thursday. Have you been a buyer on the dips that we’ve seen the last several weeks?
- It’s been a very tough market for legitimate growth managers since the macro took over in November, the S&P 500 is still about 7% off of where it was on the March rally
- Looking at growth stocks today, relative valuation multiples (an area of primary focus for Noah) are at some of the lowest levels since 1980
Will look to take advantage of awful sentiment (worst Nasdaq start since 2001, worst month for Nasdaq since 2008, worst month for the S&P since the pandemic) and focus on the many catalysts for a move higher (passing peak inflation has been good for markets, and we probably passed peak inflation in March)