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Carlyle's Rubenstein: Uncertainty makes this a good time to invest, rate cuts possible in 2023

Seeking Alpha logo Seeking Alpha 1/18/2023

Carlyle Group's co-founder and co-chairman David Rubenstein argued Wednesday that the current market offers an attractive investment opportunity, even with uncertainty about the economy. He added that a rate cut was possible later in the year.

Speaking to CNBC, Rubenstein contended that the danger of another 20% slide in stock prices has largely passed and people have become more comfortable investing in the current environment.

"It's a good time to invest now," the billionaire venture capitalist said. "The best time to invest is when there's some uncertainty or when the economy is nervous in terms of where it's going."

Looking at interest rates, Rubenstein said the Federal Reserve "is data driven" at this point in the cycle. The Carlyle founder predicted that the Fed will raise rates by 25 basis points at both its February and March meetings. From there, he sees a pause while the central bank reviews the impact of higher rates.

He added that "hopefully, by the end of the year," the Fed will be able to start cutting rates.

Looking at the broader market index, the S&P 500 (SP500) (NYSEARCA:SPY) was trading -1.0% at 3,953 in Wednesday's intraday session. The blue-chip Dow (DJI) was -1.2% and Nasdaq Composite (COMP.IND) was -0.7%.

For more the broader market, see why Seeking Alpha contributor Damic Tokic says, "Stocks are currently in a new bull market."

Now read: Home sales drop 38% Y/Y in December, but 'demand hasn't gone away': Re/Max

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