Stocks and bonds are sending opposite signals about whether US inflation will abate on its own, according to billionaire hedge fund founder Cliff Asness, who called the divergence his “biggest concern.”
Unlike stocks, the bond market is telegraphing that the Federal Reserve will make aggressive interest-rate cuts over the next year or two, Asness, co-founder and chief investment officer of AQR Capital Management, said on an episode of “Bloomberg Wealth with David Rubenstein.” That would trigger a recession that wouldn’t be mild, he said.
