Billionaire activist investor Carl Icahn said the strong rally in U.S. stocks since Donald Trump captured the White House last week might be overdone, but that investors can expect the president-elect to be a consensus builder who can help fix Washington and improve the economy.

Euro zone government bonds are starting to look attractive again after a concerted sell-off that has seen the region's benchmark German bond yield spike 50 basis points over six weeks, Franklin Templeton portfolio manager David Zahn said on Wednesday.

Protege Partners is planning to provide funding to new hedge funds next year at a time many investors are pulling away from the industry and new managers are eager for cash to start their businesses.

Carl Icahn, the activist investor who owns over $1.2 billion worth of Herbalife shares, said the stock is cheap, especially now that the cloud of a government investigation has lifted, and that the company will create a lot of jobs.

Shares of auto parts maker Federal-Mogul Holdings Corp slid 5 percent on Wednesday, after Carl Icahn told Reuters that Icahn Enterprise LP is considering pulling its $9.25 per share offer for the company.

Kathleen Gaffney, co-director of investment-grade fixed income at $343 billion investment firm Eaton Vance, said on Wednesday that she was looking to buy high-yield bonds in the cyclical sector after a potential selloff.

The U.S. economy could face a recession as soon as 2020 even if lawmakers agree on a spending plan that stokes short-term growth, a top economic adviser to Pacific Investment Management Co said on Wednesday.

The founder and chief investment officer of credit hedge fund LNG Capital said the Italian government will likely lose a December referendum on reforming the structure of the government, triggering a sell-off in Italian government debt.

The euro could hit parity against the dollar next year, as Europe contends with political uncertainty and a weak economic recovery, but sterling looks oversold, according to Investec Asset Management.

The bull market in bonds has further to run and many stocks are undervalued so investors should stop worrying about Trump and Brexit and go into the market and find bargains, the chief investment officer at wealth manager Kleinwort Benson said.