Evercore Expert: The golden age of investing for Wall Street traders is over

Ralph Schlossstein, Chairman Emeritus of Evercore ISI said: “The last 40 years have been kind of a golden age for investing. I don't think we'll have that in the next 10 or 20 years."

Investors have enjoyed peak interest for more than a decade since the Fed cut rates in the wake of the global financial crisis. But that era of cheap money came to an end in March 2022 when the Fed began a cycle of rate hikes. The central bank raised the federal funds rate by 525 basis points in an attempt to curb inflation.

“It will be more difficult to make a profit,” he added.

Ralph Schlossstein himself, who has said he can't own individual stocks due to the nature of his wife's job as US ambassador to the UK, puts most of his investments in index funds.

Investors will be closely scrutinizing Jerome Powell's speech Friday at the Kansas City Fed's economic policy symposium in Jackson Hole for a glimpse of the policy outlook after officials raised borrowing costs to their highest level in 22 years last month.

Schlossstein added that he does not expect the Fed to cut rates in the first half of next year and that the US economy will see higher rates for a long time to come, which he says the market has not yet priced in.