- Global
markets are experiencing a paradigm shift after 15 years of lowinterest rates , according toMorgan Stanley 's co-president. - "It's an extraordinary moment… it signals the end of 15 years of financial repression,"
Ted Pick said.
$4's co-president has become the latest Wall Street figurehead to warn of upheaval in global markets as the post-financial crisis era of low interest rates and cheap debt crashes to a sudden halt.
Ted Pick said that investors need to be wary of the twin threats of high
"We'll have these periods where it feels awfully fiery, and other periods where it feels icy, and clients need to navigate around that," Pick told the $4 in New York. "We'll be having this conversation for the next 12, 18, 24 months."
US markets have delivered strong returns since the 2008 financial crisis, with loose monetary policy leading to an abundance of cheap money - and $4.
But there's been significant upheaval in 2022, as investors grapple with $4.
Pick isn't the only Wall Street figurehead to predict a massive market shift. JPMorgan chief executive Jamie Dimon recently told investors to brace themselves for an "$4", while Citigroup's CEO Jane Fraser said that$4.
"It's an extraordinary moment," Pick said. "We have our first pandemic in 100 years, we have our first invasion in Europe in 75 years, and we have our first inflation around the world in 40 years."
"When you look at the combination, the intersection of the pandemic, of the war, of inflation, it signals paradigm shift, the end of 15 years of financial repression and the next era to come," he added.
Pick, who heads up Morgan Stanley's trading and banking division, has worked for the bank for 32 years. He was appointed as co-president in June last year.