Rosenberg: Economy – prognosis negative

 EmailPrint This Post Print This Post

The Treasury market is giving you a recessionary signal, says David Rosenberg, Gluskin Sheff & Associates, who adds that a decline in the GDP will not be that catastrophic but it could last a long time; with Doug Dachille, First Principles Capital Management.

Rosenberg’s points were summarized by Josh Brown of the Reformed Broker blog as follows:

* We are already in recession, and while this one may last awhile, there is no evidence to support claims that this recession will be as catastrophic as the one that began in 2007.

* Both gold and Treasuries have more room to run, but tactically-speaking, buyers should hold off at today’s prices as both are overdue for a short-term pullback.

* There’s no reason to be completely out of equities, but one should be underweight the amount of equities they’d own in a cyclical bull market, which this assuredly is not.

* The equities you do own ought to be defensive in nature and not cyclical, they should have good earnings visibility and solid dividends.

* The best type of stimulus the government could do would be something tied to energy. Natural gas infrastructure build-out for example would put legions of Americans to work and could eventually lead to much lower energy prices for consumers leading to a higher amount of disposable income.

Source: CNBC, August 23, 2011 (hat tip: The Big Picture).

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.

More on this topic (What's this?)
Market Reads
My Stock Watch List for August 2015
Read more on Investment Brokerage - National at Wikinvest
OverSeas Radio Network

Leave a Reply

  

  

  

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Top 100 Financial Blogs

Recent Posts

Charts & Indexes

Gold Price (US$)

Don Coxe’s Weekly Webcast

Podcast – Dow Jones


One minute - every hour - weekdays
(requires Windows Media Player)
newsflashr network
National Debt Clock

Calendar of Posts

August 2011
MTWTFSS
« Jul Sep »
1234567
891011121314
15161718192021
22232425262728
293031 

Feed the Bull