© Bloomberg. John Rogers
(Bloomberg) -- The US will avoid a recession this year as the Federal Reserve controls inflation, giving the stock market a boost, according to John Rogers (NYSE:ROG), chairman and co-chief executive officer of Ariel Investments.
The Dow Jones Industrial Average will likely rally 10% in 2023 and the S&P 500 Index more than that, Rogers told business leaders at the Executives’ Club of Chicago’s annual outlook event. Last year he correctly forecast a sharp increase in inflation and that Bitcoin was a bubble that would burst.
“We are much more optimistic today than a year ago,” Rogers said. “The Fed is doing the right things when it comes to money supply.”
Rogers, a veteran of the fund industry, said cyclical stocks would do well, and said he was “all in” on US stocks. He cautioned against Chinese markets due to a real estate bubble there.
“Equities in America is the place to be,” he said, adding the nation always finds a way to bounce back from its problems.
Chicago-based Ariel was founded in 1983. The firm sells mutual funds and other investment vehicles, with a focus on value investing.
©2023 Bloomberg L.P.
