While they are honest folk, he told Portfolio Adviser, if you look at what they have been saying for a long time, it hasn’t worked out for them.
Referring to expectations that the Fed will raise interest rates at its December meeting, he said: “Even if the Fed does raise in December, no one believes there is a big round coming, so lower for a lot longer is what we are likely to see.”
“Markets don’t think there will be a rate rise after that for at least another year. They don’t even question whether it is the right thing to do. So, even though the Fed keeps saying we are going to raise rates eight times over the next eight years, the markets don’t believe a word of it, and rightly so.”