CNBC: Michael Landsberg Appears on CNBC World’s ‘Street Signs’ to Discuss US Growth Forecast

October 23, 2024

Michael Landsberg, Chief Investment Officer of Landsberg Bennett Private Wealth Management, appeared on CNBC World’s ‘Street Signs’ to discuss the outlook for U.S. economic growth, inflation trends, and the Federal Reserve’s potential rate cuts.

Landsberg expressed optimism about the strength of the U.S. economy, pointing to solid earnings and resilient consumer spending as key indicators of stability.

However, he also noted that inflation might reaccelerate, which could lead to fewer rate cuts in 2025 than previously anticipated.

Additionally, Landsberg highlighted global opportunities in markets such as India and Japan, which he believes offer attractive growth potential and diversification.

Key Takeaways:

  1. U.S. Economic Growth: Landsberg acknowledged the U.S. economy’s continued strength, stating, “I think the U.S. economy growth-wise is doing quite well,” with solid earnings reports reinforcing the outlook. He emphasized that while growth in the U.S. may not match markets like India, it remains stable enough to support further gains.
  2. Inflation Expectations: He predicted a possible uptick in inflation, mentioning that the September CPI report likely marked the cycle low. “I think you’re going to start to see inflation tick back up,” he explained, attributing this to rising commodity prices and shipping costs. This could lead the Federal Reserve to reconsider aggressive rate cuts.
  3. Interest Rate Outlook: Landsberg expressed skepticism about significant rate cuts in 2025, noting, “I don’t necessarily think we need to lower rates… when we do need it, we’re going to not have that ammunition.” He underscored the importance of maintaining flexibility in monetary policy to respond to future challenges.
  4. Sector Focus: Landsberg discussed sectors that might perform well in a higher-rate, inflationary environment. He highlighted the potential for continued growth in areas like real estate, consumer-driven sectors, and luxury goods, particularly those benefiting from demand in Asia.
  5. Global Markets: Landsberg pointed out that international markets, particularly India and Japan, offer valuable growth opportunities. “India’s growth rate is two to three times that of the U.S.,” he said, emphasizing the diversification benefits of investing in these markets.
  6. Diversification Strategy: He advocated for strategic diversification into sectors and regions outside the U.S. to manage risk and take advantage of better valuations. “ETFs are a great way to gain exposure to these markets,” Landsberg advised, especially when it comes to markets with limited individual stock availability like India.

Landsberg’s commentary on CNBC reflected his cautious optimism about the U.S. economy while also acknowledging global opportunities for growth and diversification. He urged investors to stay prepared for inflationary pressures and to consider diversifying into international markets and sectors that can thrive in a higher interest rate environment.

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