We should 'fight the Fed' because it is fallible, investment advisor says

Investors shouldn't needfully align their concern decisions with the Federal Reserve's actions, according to Stephen Isaacs, president of the concern committee astatine Alvine Capital.

"The question we've got to inquire ourselves is 'should we combat the Fed?' And I'm saying really we should see that, due to the fact that the Fed are fallible. The Fed fundamentally got it incorrect for 2 years," Stephens told CNBC's "Squawk Box Europe" connected Thursday. 

His comments travel arsenic the U.S. experiences rapid inflation and a booming dollar, and economists speculate implicit what the Fed volition bash next.

Investors astir the satellite volition beryllium watching September's jobs report, owed aboriginal Friday, for further clues arsenic to the Fed's adjacent moves.

Stephens said that the Fed took until this summertime to existent woody with the U.S.' economical situation, aft "stoking inflationary fires" toward the extremity of the Covid-19 pandemic.

The Fed's benchmark complaint was near-zero successful March, but it has since embarked connected its most aggressive series of complaint hikes since the 1980s, raising the complaint to a people of astatine slightest 3%. 

Now, Stephens said it whitethorn beryllium worthy banking a U-turn from the Fed.

"If the information truly changes, if the economical and recognition concern crucially successful the system starts to truly unravel past the Fed … volition aggressively pivot. And bearing successful caput the marketplace is truthful acold up successful the assumptions of overmuch precocious involvement rates, that could person a precise melodramatic effect connected plus prices," Stephens said.

The U.S. isn't retired of the woods yet economically, Stephens said, with a fig of "very hard situations" coming successful the months ahead.

"I judge determination could beryllium a recognition lawsuit [in that time]. There could beryllium thing that blows up … So that's the benignant of happening I'm truly looking for, I'm looking for a trigger point, and I deliberation investors should beryllium looking successful that play to accumulate assets," Stephens said.

There has been overmuch speech of a alleged Fed pivot implicit caller months, with Anastasia Amoroso, main concern strategist astatine iCapital, saying Tuesday that investors should not expect the Fed to U-turn imminently.

— CNBC's Hugh Son contributed to this report.