The next long-term stock market rally could start in 2023, according to a strategist at a $990 billion asset manager. He shares 4 undervalued investments to make now before it kicks in

• Schroders strategist Bill Callahan fears the Fed is overtightening to try to curb inflation.
• “Eventually they will realize they’ve made a mistake,” he told Insider in a recent interview.
• Callahan shared four stock market sectors to buy now to position for the end of the bear market.

It’s been a rough couple of years for the Federal Reserve.

In 2020 and 2021, the US central bank pursued ultra-loose monetary policies to try to spark a post-pandemic economic recovery – leading some to criticize it for fuelling an ‘everything bubble‘ that inflated the valuations of stocks, real estate, and cryptocurrencies.

This year, the Fed has started aggressively hiking interest rates to try to tame soaring inflation, which has triggered a stock market downturn and led to high-profile market gurus like Mohamed El-Erian warning that it’s damaging its own reputation.