Stocks Slide in One of Market’s Worst Weeks This Year

Seth Bernstein, the president and chief executive of AllianceBernstein, a fund manager responsible for more than $600 billion in assets, believes the Fed may have to push the U.S. economy into a recession in order to bring down stubbornly high inflation.

“What we are faced with is inflation expectations that are pretty embedded,” he said, adding that a recession was the only way to “break” them.

Nicolai Tangen, the head of Norway’s sovereign wealth fund, said, “if you asked me a year ago what is the worst scenario for financial markets, I think things are now worse than anything we could have imagined.” The fund manages money generated by Norway’s extensive oil and gas sales and currently has $1.4 trillion invested around the world.

Mr. Tangen said that he doesn’t think there is an investment area anywhere in the world that is likely to make money in the near future. “That’s the really depressing thing,” he said.

Article source: https://www.nytimes.com/2022/09/16/business/stock-market-economy.html