McCully, former chief economist at PIMCO.

(File photo, Bloomberg)

[Financial Channel/Comprehensive Report] Paul McCulley, former chief economist of PIMCO, believes that now is not the time to short the market. He believes that the current stock market valuation is reasonable, and the Federal Reserve is expected to achieve a soft landing.

However, his views are very different from those of other Wall Street commentators, which has attracted attention.

McCully made the above remarks in an interview with CNBC on Monday (5th), emphasizing that he does not want to be entangled in the issue of corporate profitability. The stock market valuation is reasonable. Now is not the time to short the stock market. That was a year ago. .

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Meanwhile, many Wall Street investment banks are forecasting a 20% or more decline in stocks in 2023 as rising interest rates weigh on corporate earnings and the U.S. economy slips into recession.

McCully noted that the S&P 500's 15% decline since January, especially in overheated areas of the market such as technology and growth stocks, has been driven lower by poor results in 2022, a further indication that valuations in some markets may be at reasonable levels .

McCully argued that even with higher interest rates, the Fed can still avoid a recession, emphasizing that a soft landing is a feasible and likely outcome, not out of reach.

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