US stocks sold off sharply on Tuesday as investors gauged the impact of a hotter-than-expected August inflation report. Market watchers are now bracing for a 75 basis point rally at next week’s Federal Reserve meeting, with Nomura taking a more bearish view on a full percentage point rise. Billionaire investor Kevin O’Leary also predicts a 75 basis point increase, though he thinks it will “most likely” be 100 basis points. “Just 48 hours ago, it was assumed that the Fed’s final rate would be 4%. And that would be the maximum in terms of rate hikes, but now we’re past that,” O’Leary said. , president of O’Shares. Invest, told CNBC’s “Street Signs Asia” on Wednesday. “The degree of uncertainty about interest rates at the end of the period, where the Fed will stop raising, is now officially an unknown. And so that’s an extremely serious issue for the market,” he added. But O’Leary said now is a good time for investors to jump into stocks, even as some may chase record-high Treasury yields, which are generally considered risk-free. . Yields on 2-year Treasuries, the part of the curve most sensitive to monetary policy, rose to 3.794% at one point on Tuesday, the highest level since November 2007. “If you As an investor, perhaps the best thing here is – since you can’t predict the bottom – is to take chances on days like today and buy stocks that you think are attractive,” he said. . “If you’re an investor like me, you have to find stocks to work with because you can’t say there’s no alternative when you get 3.79% [yield] on the Treasury. But honestly, if you want to get a 6% to 8% return, you’re going to have to put some money in the wrong direction,” he added. O’Leary’s Top Picks to Navigate Volatility included chip giants Broadcom and Nvidia. “These stocks have declined but they are still growing. They are still needed. The venture capitalist says the whole idea that we’ll stop needing semiconductors is ridiculous. O’Leary also likes IBM as another safe bet. An old dinosaur company that has a dividend yield of over 5% and is rebuilding itself as a web-based company. That’s another name you can hide in the weeds,” he said. Bank stocks also look appealing to him, with the sector trading at an average book value of 1, 1 time – the level he said is “traditionally a great place to buy. . “Read more Morgan Stanley says an investment ‘boom’ is coming to India and names the stocks to play the game. Forget oil – coal is hot right now. Here are 2 stocks. to play it, according to Wall Street experts who are calling Morningstar said the fund is ‘one of the best’ Energy stocks can also enjoy favorable conditions as they head into the winter months, capital is “traditionally good” for the industry. In particular, he believes that natural gas will be a “story” if the war between Russia and Ukraine continues. He believes natural gas is a “story long-term secular story “, because this item is badly needed by Europe “in the context that the continent is struggling with Russia in terms of gas supplies, and also because of its efforts to offset carbon emissions in the US by switching to tural gas. “Energy has fluctuated because it is also playing the global recession game. The reason oil prices are adjusted is because people’s demand will slow down. But I don’t see any figures for that. I do not see in O’Leary said, pointing to OPEC+ production cuts and the closure of a key Russian oil pipeline. But there is still a “peaceful danger” to the energy story. “Energy prices are tied to the Ukraine war… if suddenly an agreement is signed with the Russians, you will see a significant correction in oil prices,” he said. – Lee Ying Shan of CNBC contributed to this report.