John Rogers Of Ariel Investments Says US Will Avoid Recession In 2023: 'More Optimistic Today Than A Year Ago'

John Rogers, chairman and co-CEO of Ariel Investments, said the U.S. will avoid a recession this year as the Federal Reserve reins in inflation.

“We are much more optimistic today than a year ago,” Rogers told business leaders at the Executives’ Club of Chicago’s annual outlook event, according to a Bloomberg report. “The Fed is doing the right things when it comes to [the] money supply,” he said.

Load Error

Also Read: Best Penny Stocks

The fund industry veteran said the worst has been left behind and bad news is already baked-in. He also expects the central bank will get inflation back to the 4.5% level.

Must Read: Ethereum Rival Overtakes Dogecoin Market Cap Amid Bitcoin, Crypto Rally

The consumer price index rose 6.5% in December, down from 7.1% in November, according to data from the Labor Department. Core inflation, which excludes volatile food and energy prices, was up 5.7% in December, in line with market estimates. Following this, major Wall Street indices closed in the green on Thursday. The SPDR S&P 500 ETF Trust (NYSE: SPY) closed 0.36% higher while the Invesco QQQ Trust Series 1 (NASDAQ: QQQ) gained 0.54%.

On U.S. Equities: Rogers said cyclical stocks would do well, adding that he was “all in” on U.S. equities. He added that auto-related companies were “well-positioned,” and was optimistic about housing and real estate.

“Equities in America is the place to be,” he said.

Rogers, however, cautioned against Chinese markets owing to a real estate bubble there and said Bitcoin prices could decline further. “I don’t see any real value there,” he said about cryptocurrency.

Bitcoin (CRYPTO: BTC) is up over 13% on a year-to-date basis while Ethereum (CRYPTO: ETH) has gained over 17%. Bitcoin briefly jumped over the $19,000 mark on Thursday after December inflation data was released.

SPONSORED

Retirement can be a difficult part of life to navigate, and a financial advisor can help. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.