John Rogers, chairman and co-CEO of Ariel Investments, said the U.S. will avoid a recession this year as the Federal Reserve reins in inflation.

“We are much more optimistic today than a year ago,” Rogers told business leaders at the Executives’ Club of Chicago’s annual outlook event, according to a Bloomberg report. “The Fed is doing the right things when it comes to [the] money supply,” he said.

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The fund industry veteran said the worst has been left behind and bad news is already baked-in. He also expects the central bank will get inflation back to the 4.5% level.

On U.S. Equities: Rogers said cyclical stocks would do well, adding that he was “all in” on U.S. equities. He added that auto-related companies were “well-positioned,” and was optimistic about housing and real estate.

“Equities in America is the place to be,” he said.

Rogers, however, cautioned against Chinese markets owing to a real estate bubble there and said Bitcoin prices could decline further. “I don’t see any real value there,” he said about cryptocurrency.

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