The Fed needs to 'kill the zombie' with a high-rate-induced recession before investors should jump in to buy more stocks, strategist says

• Investors need to wait for a recession and accompanying rate cuts before putting more cash into stocks, Canaccord's Tony Dwyer says.
• He describes the US economy as a "zombie" that needs to be "killed" before a recovery can start.
• Under such a scenario, the Fed would leave interest rates higher for longer to induce a downturn, then cut rates, Dwyer says.

The Fed needs to kill off the half-dead US economy by leaving rates higher for longer to induce a recession — and only then should investors put more cash in the market, according to Tony Dwyer, the chief market strategist of Canaccord Genuity.