Treasury debt yields rising paired with a jump in rates have been prime factors to blame for October’s sell-off, and U.S. President Donald Trump has been a vocal critic of rising interest rates, using social media and speaking engagements to denigrate the Federal Reserve’s rate-hiking with respect to monetary policy. Just last month, the Fed increased the federal funds rate for the third time this year by 25 basis points and hinted that a rate hike in December is imminent given the growth of the economy.
Amidst October’s correction, the technology sector, in particular, received the brunt of the punishment as the S&P 500 followed the Nasdaq Composite into correction territory. While investors are seemingly running for the exits, O’Leary viewed the correction as a walk through the garden and was bullish on the U.S. economy.
“I’m bullish that the American economy is strong and this (correction), too, will resolve itself,” said O’Leary during a “CNBC Disruptor 50” segment. “To me, this is a garden variety correction. It could correct as much as 22 to 25% and if you can time the market, great.”
Related: S&P 500 Follows Nasdaq into Correction Territory as Tech is Trounced
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