Bond market is screaming that recession is coming, says Quadratic's Nancy Davis

Nancy Davis, Quadratic Capital founder, joins 'Closing Bell' to discuss her thoughts on Jeffrey Gundlach's latest on the Fed and economy. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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[@bsetdays6784]

There are lots of mixed opinions about stocks and there projection in the next coming years, I aim for short term solid gains from market correction and I'd definitely jump on the boat if I knew a thing or two about day-trading, but then again what do I really know? I'm just looking for the right moves to grow and hedge my stagnant reserve of $370k from inflation.

[@abulkalma0077]

it's all hype! best to ignore the trend at the moment whether bullish or bearish, and stick to a proper trading plan preferably with expertise assistance.

[@roddywoods8130]

Yeah, more reason I enjoy my day to day market decisions is that i'm being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to outperform. Netted over $1.5m in return on investment, since using a coach 2years and counting.

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[@roddywoods8130]

I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, ‘’Mrs Marisol Cordova’’ turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.

[@selenajack2036]

Thanks, I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.

[@Cordycep1]

hike too much? but no one complaint cut too much. They are in this mess becuase they created the mess.

[@yonishain3208]

One of the only ones who'll admit a recession is coming 👏

[@theunbearablebull]

Most do, they just don't know when.

[@r-uu2qi]

It’s not coming. The market still hasn’t recovered

[@LivingWithGout]

We need a whole percentage point increase to get ahead of inflation. Saudi Arabia and Russia just cut oil production.

[@willzilla30]

Lady Gaga… CIO by day, musician by night. 😊

[@farnio]

Hahaha😂

[@MrFuadee]

We are not going to see a cut for a while

[@Gadsdenflag]

Bingo

[@sunmand6136]

Nancy Davis is super smart and very eloquent.

[@info781]

Everyone wants a recession so bad, yet unemployment is basically 0%. The housing market is stable, bottom line these rates are here to stay for at keast two years. Not much higher, but not lower.

[@bianconerointheus6692]

Unemployment is at 3.8%, very low but still higher than the months before. The number of jobs added in the economy registered less than 200K for three months in a row, something that didn't happen in the last 3 years. The housing market is in the worst situation possible as it's STAGNANT. Nobody buys , nobody sells. Sales are down about 26% since last year. Credit delinquency is at 2.77%, the highest number since 2012 (even if historically low). I don't know if a recession is coming but the economy is definitely slowing.

[@info781]

@@bianconerointheus6692Not arguing but a slower housing market is not a bad thing. Having non-stop bidding wars and 25% price increases in a couple years is not sustainable. We need to get many more apartments built to contain rent increases and that will take time. There is also a lot of money sloshing around out there due to the 4 Trillion in QE, that needs to be pulled back via QT, which will take time. Everyone working person I know is super busy and business is stacked up.

[@bianconerointheus6692]

@@info781 Definitely. I agree with everything you said. A slow down does need to happen. I'm curious to see if simply a downturn is going to occur (like unemployment at peak 4.5%, GDP quarters being close to zero) or if we 're going to have a real recession (unemployment over 5.5%, two or more consecutive negative GDP quarters).

[@Rick1234567S]

" Important:The Federal Reserve eliminated reserve requirements for all banks as of March 15, 2020. The move was part of its effort to keep economic activity healthy during the COVID-19 pandemic.The Fed's action effectively sets the reserve requirements ratio at 0%.[1]" Maybe you need to be a banker to understand that for sure every bankers best friend understands that since that is how he got his Lear jet with no income and refinanced it 4 times without a payment. He used it to fly to Europe to buy stocks and commercial properties. Which he borrowed from his banker who just printed the money on paper. Hence BRICS and in March it will cost 100 US dollars to buy one BRICS dollar. All bonds will be worthless.

[@stablegenious]

someone please remind Scott that even though he is in Cali, socks are still mandatory

[@conniehayes4957]

It has the potential to be massive

[@briantimmins9723]

Nancy's perspective is always good to listen to....she is solid.

[@MrSupernova111]

More like a vulture.

[@rexiansayson]

Lovely beach, where was this shot?

[@theunbearablebull]

Earth

[@rexiansayson]

@@theunbearablebull Aw, thanks, cutie. Very helpful 😂

[@InsaneCookies]

@@rexiansayson Somewhere in the Solar System

[@mikefranck829]

Looks like Huntington Beach, CA

[@theunbearablebull]

@@mikefranck829 lol based on the palm trees and sand? 😂😂

[@jtstacey83]

The funny thing is this woman seems to forget that in 1971 the interest rate was 7% by 1981 it was 18% and in 1991 10%.The facts are $4 trillion in corporate debt is getting ready to mature and will have to be refinanced at higher rates killing profits and honestly forcing many companies who have been surviving on low interest rates to close shop. Many of these issues are from 2008 which never got addressed but simply kicked down the road.

[@MrFuadee]

I don’t think she was around in 1970😂 that’s why

[@MrSupernova111]

She's a fund manager. She only cares about short term profits and her fees. She can care less about the public and the economy at large.

[@gregfawcett5152]

Nancy is right on...smart girl.

[@lewicegarcia]

Hit 200k today. Gratitudes to you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in June 2022

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[@lewicegarcia]

That’s his Whatsappinfo

[@pameladolan]

I'm very glad i stumbled on this today writing to him now. Really hope he can help me too

[@Ericaaaaaaaaaa]

Obvious scammers are obvious.

[@st.charlesofaberdeen154]

The feds time is running out presidential elections are in October of next year so those rates have got to come down

[@MrSupernova111]

Nope.

[@Barbe194]

What is going to happen is the housing market is going to crash and realitors are screwed. When the housing market triple the housing payments expecting consumers to buy or rent failed. Now, recession is on the way and everything is going to crash. Who loses? Everyone! This is this is what GREED looks like.

[@MrSupernova111]

Realtors will get what they deserve. Time to get rid of greedy middlemen.

[@info781]

Doomsters have been calling this recession since 2021, they will be correct one day. I guess it is nice to not have to work, but just start a YT channel with nonsense predictions.

[@Otto876]

When long term treasury bonds trade with more volatility than stocks something is broken. Good job Fed.

[@dons3073]

She’s wrong

[@InvestingwithHawar]

I thought one of your guests yesterday said to buy any dips. In any case, we all thinking about a recession coming. If it doesn't the bears will be embarrassed.

[@info781]

Embearassed

[@Josh-og5ux]

If her portfolio looks like her. We’re in good hands

[@Gadsdenflag]

Synthetic and full of moronic nonsense?

[@MrSupernova111]

She's a vulture dressed as a sheep.

[@ShamileII]

Great discussion!

[@Gadsdenflag]

What are you smoking?

[@dons3073]

Limit credit da

[@MrDboydeluxe]

I sold out of Doubleline TR, Core Bond, and Emerging Markets bond months ago, couldn’t be happier having done so. Years of underperformance. Still holding Doubleline floating rate.

[@shashydhar]

pansies lol

[@syedarmaghanhassan4652]

she is sensible..

[@info781]

No most of the QT is mortgages , have to wait for people to cash them in before they come off the balance sheet. Plus rates are not too high, economy is booming.

[@syedarmaghanhassan4652]

@@info781 what would it take for inflation to come down? The demand needs to come down.. but it is probbly not going to

[@info781]

@@syedarmaghanhassan4652 We are going to need to keep rates at this level or a little higher for three years or so. China making things cheaper was a big driver of deflation.

[@MrSupernova111]

@@syedarmaghanhassan4652 . Its going to take high interest rates, a credit crunch, and unemployment to bring down inflation. Don't hold your breath. It could be a while.

[@y2.1kapocalyptic2]

Nancy Davis should be the next Federal Chairman!! Jerome Powell did great, but he will likely resign after they are done with rate hikes.

[@thomasweilbacher1812]

what

[@letsdanceonhere]

smart lady.

[@marijavasilevska1581]

she could lose 30 pounds!

[@ceejaydeesoozaa]

LOOKS LIKE LADY GAGA

[@jerryp6001]

then you go work for the fed lady. same thing with hannity whining and complaining about this that the other. you go do it then. you don't like it. you run for office. but i know...he is more effective at telling what others should do...then doing himself. how about we do the interest rate hikes like an american idol contest. where everybody gets to vote. older people want better cd rates... younger people want better mortgage, credit card and car rates. let's battle it out. this talking head says this. that talking head says that. an infinite number of talking heads on this side... infinited number of talking heads on that side. blh blh blh blh blaaaaaaaaaaaaaaaaaaahhhhhhhh

[@nitinkumar5241]

Awful guest Her IVOL ETF is pointless and terrible

[@christinajurado9180]

I've been around the market long enough to know that this ups and downs can still prove to be highly beneficial, time again I've seen people use these windows of opportunities to make millions and set up for retirement. I just don't know how they did it.

[@mariasimpson9628]

The best solution I to hire an investment coach that can construct a flexible portfolio to reflect changing market conditions and retirement objectives with this you can review portfolio regularly and make changes where necessary.

[@albertbrian6448]

I couldn't agree more. Once I assumed I had a hang of the market, accrued over $50k in a quarter and got super elated, not until I stumbled upon a portfolio coach whose been guiding me since early 2020 amidst the lockdown. it's exciting to share . I've netted over $800k after subsequent investment so far.

[@filipxavier1041]

Sweet! how did you go about getting a proper investment adviser like that, I've had plans to touch base with one. I'm not just sure how to go about it. I don't mind looking up to this one that guides you?

[@albertbrian6448]

Camille Anne Hector is my manager. She is well researched. just took up her name on your browser her website is like the first thing that pops up.

[@christinajurado9180]

No way this is real I had come across a section were this Mrs Camille was highly talked about at this point I’ll just look her up myself cause it would be crazy if I’m missing out on a great opportunity

[@MrSupernova111]

The wolf using folksy language to appeal to the clueless sheep. I wonder if, as a fund manager, she benefits from low interest rates.

[@cityboyis2]

this is why i choose the blonde market

[@Gadsdenflag]

😂 natural or synthetic? Personally I diversify.

[@rojabuckingham9034]

Did she really call the people on Fed Pansies? She clearly doesn't know how offensive that is. I hope someone at CNBC schools her.

[@moosejoose4]

nah it was a great comment. you could tell how genuine and direct that was. why would the Fed care if something offended them? that's not the job.

[@bianconerointheus6692]

The snowflakes crybabies!

[@Gargamel-n-Rudmilla]

The bond market is wrong in this instant. Why, because home owners locked in low rates last yr at 2-3%. This means consumers are immune to hikes for maybe 5-10yrs.😊

[@Psychetwo]

Home owners are safe but the many many consumers who rent apartments are not. And their credit card debt will continue to go up

[@venkkandadai6042]

It’s not just mortgage and credit card rates. The cost of borrowing money is more expensive now which inhibits businesses in expanding, growing, investing, ultimately affecting the labor market

[@drscopeify]

@@Psychetwo The Credit card debt in 2019 before the COVID crap was 850 billion and during COVID people were at home and not traveling or eating out or going on holiday so debt went down to 780 billion or so, but the question is the jump to 1 trillion today is a big deal or not? It has been 3 years, prices have re-aligned upwards like 20% or 30% or whatever due to so much new money so is 1 trillion a big deal? I guess if delinquency rates rise and people foreclose on cars then it is proof that it is an issue but so far the rates are only rising back to normal levels we will see if it goes above 2019 then maybe its a cause of alarm but even then prices have gone up so I expect more people to be in trouble than 2019 so maybe even that is not a clear warning sign??? I gues time will tell.

[@theunbearablebull]

You have no idea how the bond market works do ya lol

[@drscopeify]

@@theunbearablebull Care to elaborate?

[@3xfelix]

Stock market and housing market crash coming...joyous times ahead

[@info781]

People seem to want the recession so bad to buy things cheap.

[@MrSupernova111]

@@info781 . That's how the rich do it.