Otavio (Tavi) Costa: Fed hiking into slowdown is a problem

Otavio (Tavi) Costa: Fed hiking into slowdown is a problem
Fed hiking into slowdown a problem

Otavio (Tavi) Costa, portfolio manager at Crescat Capital, expressed concern about the prospect of the U.S. Federal Reserve likely continuing to raise interest rates even as economic growth slows. Costa referred to this approach as 'hiking into deceleration' and described it as problematic.

Costa has previously argued that gold miners offer the highest free cash flow yield among U.S. equities. He also noted that the recent correction in gold nearly matches the 2008 decline. Costa viewed that pullback as a potential opportunity.

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