Michael Wagner on Fox Business: Warnings from the Bond Market

As recent stock market selloffs seem to have little impact on investor optimism, Omnia Family Wealth Co-Founder and Chief Operating Officer Michael Wagner believes that investors should remain cautious and consider the message the bond market is sending about future growth. Fox Business spoke with Wagner to learn more about why the stock market may be heading toward rough waters.

“The bond market is telling you something very different than the stock market,” explains Wagner. “We are very near historical highs today and when we are looking at yields, what we are seeing is a very muted picture for growth. So, you’re getting pretty mixed messages from the two markets.”

Even as other experts in the industry have predicted gross domestic product (GDP) growth as high as 10% for the quarter, Wagner stands firm in his belief that the U.S. will experience muted growth.

“What we’re seeing from the bond market at least is more muted growth,” Wagner tells the network. “We have a saying here that S&P is not necessarily GDP.”

For investors hoping to use any current rallies to take profits while also protecting their portfolio from potential corrections, Wagner recommends looking for opportunities with growth-year sectors, big technology names and more traditional sectors, such as commodities.

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