It is important to remain vigilant and give more consideration to securities and regional choices
"We may be in the middle of the cycle," said the Pimco portfolio manager.
The current economic cycle is moving so fast that Anthony Crescenzi, a market strategist at Pimco, asks investors to remember four words: "stay alert."
"it is important to remain vigilant, actively participate in portfolio management and consider more securities and regional choices," he said in an interview on Tuesday.
The key question now is what stage of the growth cycle the US is in and how fast the Fed needs to act to raise interest rates to curb inflation.
"the economic cycle is moving at a rate of curvature," said the Pimco portfolio manager. "We may be in the middle of the cycle. Look at the current unemployment rate, 4.8%. What is the situation at the end of the week? The unemployment rate should be lower, and with the realization of full employment, the unemployment rate is expected to reach a lower level next year.
The market predicts that the Fed may raise interest rates next year, but some strategists think the Fed will wait until 2023.
"the change in the yield curve illustrates the rapid change in the cycle," Crescenzi said. "the yield curve has flattened again recently, which usually happens later in the cycle because the Fed is raising short-term interest rates."