Investor Rich Bernstein warns that rising Mideast tensions could spark a stagflation crisis (via TradingNation)
, WTI and Brent were up 3% and 4%, respectively, as of Monday. Prices were down nearly 1% Tuesday morning. If prices continue to rise, Bernstein said, it will contribute to inflation and put pressure on the economy.
"If you're a member of the Fed, what do you do? Do you pay attention to the rising prices or do you pay attention to the slowing growth? And that's being caught between a rock and a hard place for a central bank," he said. "It's a terrible place to be.". On Monday, the major indexes reversed early losses to close in positive territory and are nearing record highs."We've already got kind of slowing or deteriorating fundamentals," Bernstein said.
due to a deceleration of corporate profits and a slowing economy. However, Bernstein kept his overweight rating on stocks because momentum was so strong. "I don't want to say that in our firm we have been selling our clients' portfolios. But we certainly have been calming down and lowering the ," he said. "Going into 2020 now, you have turmoil. And, the turmoil in the Middle East isn't going to make fundamentals better."
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