Earnings Beating—But Macro Issues Still Dangerous: Chief Investor

Cisco and Visa both reported better-than-expected earnings after the bell on Wednesday. Does this signal an upward movement for markets? Jeff Hussey, chief investment officer of fixed income at Russell Investment Group, shares his views.

“Those firms are actually growing topline revenue, which is something we’ve been concerned about and wanted to see before we raised our forecast,” Hussey told CNBC.

“These are better than expectations, relative to our longer-run macro forecast.”

Hussey said he is also concerned about the macroeconomic issues, such as the sovereign debt risk and new policies coming from Washington that could limit certain bank activities and higher taxes for some businesses.

“We have too much debt as a nation, high unemployment, too low a capacity utilization, and high ownership rates,” he said. “All of those are significant imbalances that will put a drag on our economy.”

Hussey advised investors to look into bonds.

  • Watch Hussey's Previous CNBC Appearance (Dec. 1, 2009)

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No immediate information was available for Hussey or his firm.