The Dow soars 550 points after getting another caffeine jolt – CNN

Investors might want to look past the stock market given just how much good news is already priced in, said Anthony Scaramucci, founder and managing partner of SkyBridge Capital, on the CNN Business digital live show Markets Now.

Scaramucci is particularly concerned about how much FAANG stocks are driving the game. Those stocks are no panacea, he said, and the market could see a selloff “when the music stops for those stocks,” he said.

The equity market is priced for an impending recovery, but the bond market is telling a different story.

“The biggest opportunity is in the fixed income markets,” Scaramucci said.

This also holds true given the “green tsunami of money” the Federal Reserve has unleashed to support financial markets and the economy.

Skybridge had a painful March when fixed income markets seized up. Scaramucci admitted that his fund’s investors pulled their money out.

But there is reason to be optimistic now.

“There’s probably a 20% move [to go] in the structured credit markets, where that is already priced into the equity market,” Scaramucci said. The structured credit market includes mortgages and collateralized loan obligations.

Scaramucci, who briefly served as White House Communications Director under President Donald Trump, said it would be hard to win for Trump to win a second term given the current recession and double-digit unemployment.

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