Morgan Stanley‘s co-president has become the latest Wall Street figurehead to warn of upheaval in global markets as the post-financial crisis era of low interest rates and cheap debt crashes to a sudden halt.
Ted Pick said that investors need to be wary of the twin threats of high inflation and a potential recession – which he labeled “fire” and “ice” respectively.
“We’ll have these periods where it feels awfully fiery, and other periods where it feels icy, and clients need to navigate around that,” Pick told the Bernstein Strategic Decisions Conference in New York. “We’ll be having this conversation for the next 12, 18, 24 months.”
“It’s an extraordinary moment,” Pick said. “We have our first pandemic in 100 years, we have our first invasion in Europe in 75 years, and we have our first inflation around the world in 40 years.”
“When you look at the combination, the intersection of the pandemic, of the war, of inflation, it signals paradigm shift, the end of 15 years of financial repression and the next era to come,” he added.
Pick, who heads up Morgan Stanley’s trading and banking division, has worked for the bank for 32 years. He was appointed as co-president in June last year.
Source: africa.businessinsider.com
