Jim Bianco warns stocks face serious competition

Jim Bianco warns stocks face serious competition

Stocks face fierce competition for cash, says market forecaster Jim Bianco

Traditional savings accounts are growing relative to stocks.

And, the winner could be your neighborhood bank for the first time in years, according to Wall Street forecaster Jim Bianco.

He argues that rising interest rates provide investors with safer ways to generate income.

“Money isn’t trash anymore. It was a two-decade-old meme that doesn’t apply,” the president of Bianco Research told CNBC.quick moneyWednesday. “Silver could actually be kind of an alternative where it was just a waste of time all through the 2010s. It’s not that anymore.”

He uses the 6-month treasury bill, which is currently yielding over 5%, as an example. Bianco thinks it will soon reach 6%.

“Sucking Money from the Stock Exchange”

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“Investors are going to have to start thinking about the idea that we have a 5% or 6% world,” Bianco noted.

He believes that inflation is unlikely to move significantly in the coming months.

“A lot of people are starting to think … the Fed just isn’t going to do one more rate hike, but it’s going to do a lot of more rate hikes,” Bianco said. “That’s why I think you’re starting to see the stock market waking up to this.”


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