Investors' only bet for making money in current environment is to stay long stocks and 'enjoy the Fed support,' Skybridge Capital co-CIO says
- Troy Gayeski, co-CIO of
Skybridge Capital, said to be long stocksand "enjoy the Fedsupport" to make money right now.
- He explained two factors behind this call: the divergence of the
stock marketand real economy, and the Fed's balance sheet.
- Gayeski said the US is facing a "historic divergence" between real economic outcome and the stock market.
- Read More on Business Insider.
Troy Gayeski, co-CIO of
Gayeski said the US is facing a "historic divergence" between real economic outcomes and the stock market. This is in part because big tech is dominating the S&P 500, he added. The top five names in the index — Microsoft, Apple, Amazon, Facebook, and Alphabet — are up 275% since the beginning of 2015, while the rest of the stock market is up 25%, he said.
"So those two factors mean asset reflation is here, and really the only way to make money is to be long equities and also be long credit, and enjoy the Fed support," Gayeski said.The investor also said that another round of stimulus is a "necessity now."
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