Greg Jensen on What a Longer Tightening Cycle Means for Markets

Co-CIO Greg Jensen joins "Bloomberg Markets" for an interview, which was recorded the day before Fed Chair Powell’s August 26 speech at Jackson Hole. Greg discusses how markets aren’t discounting the amount of tightening that resilient inflation is likely to require, or the impact that this tightening is likely to have on the economy. And he describes why a longer tightening cycle could be especially painful for markets at a time when asset prices remain about 25% above their historical relationship to the real economy cash flows they represent.

The interview also covers a number of other topics, including what investors can do to protect their portfolios in the current environment; the impact of quantitative tightening; the challenge for Chinese policy makers of stimulating growth amid a zero-COVID policy and problems in the property sector; and the extreme difficulties Europe’s economy is facing.