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End Of An Era: Saker Nusseibeh Says Markets And Economies Will Soon Not Move In Sync

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End Of An Era: Saker Nusseibeh Says Markets And Economies Will Soon Not Move In Sync

Saker Nusseibeh is the CEO of Hermes Investment Management, a UK-based asset management firm, and was a guest on CNBC to offer his outlook for the U.S. and global economy.

According to Nusseibeh, we have "come to an end of an era" of coordinated drivers in the economy and stock market that helped boost stocks higher over the past few years. Now, he said, we are entering a new "destructive" environment that puts markets at risk.

Nusseibeh said a rise in U.S. interest rates serves as a signal that at least the United States is "coming out of the super normal cycle" of low rates.

"The equity markets are not stupid," he said. "They recognize if you go back into a cycle where interest rates going up is bad and coming down is good - but at least they are coming out of it. Everywhere else, certainly in Europe, they are way behind."

Finally, the investment pro suggested that the U.S. economy will see decent health, but not great. He added that a 4 percent growth rate in the U.S. is "too much" but a 2 percent growth rate is a "new normal" rate that "people are expecting."

"Do I think there is a going to be corporate earnings improvement in the U.S?," he asked. "Yes... Do I think it will be 4 percent earnings growth that will drag the rest of the world up? No."

Posted-In: Asset Managers CNBC Fed Interest Rates Hermes Investment mat Sker usseibehEconomics Media

 

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