T. Rowe Price's Sharps: Market is pricing in earlier-than-expected rate hikes

Money Life with Chuck Jaffe

Rob Sharps, president and chief investment officer at T. Rowe Price, says that the stock market has mostly taken in stride and priced in the Federal Reserve reducing its bond purchases and raising interest rates sooner than had previously been expected, and that it can weather the inflation/rate-hike storm without a major bear market. Sharps worries that the economy will have to stand more on its own -- with the end of Covid stimulus packages -- to keep things moving, so he does expect some slowing, but he sees opportunities in small- and mid-cap stocks as the recovery slows its roll. Also on the show, Jeff Auxier, manager of the Auxier Focus Fund, talks about finding long-term buy-and-hold businesses at reasonable prices in the Market Call, and Ken Tumin, founder at DepositAccounts.com, discusses the banking fee structures that have been changed -- for better or worse -- as a result of the pandemic.