Columnist Adib Motiwala posted an article recently whichdiscussed David Rosenberg's bearish outlook on the economy. Rosenberg is bullish on bonds because he sees deflation coming on the horizon. Rosenberg believes that deleveraging in the public sector will tame all inflationary forces. Logically, Rosenberg is more cautious on equities, although he is not outright ignoring them. Rosenberg likes equities that have pricing power and will be less effected by deflation. Rosenberg also recommended gold because gold is a protection against uncertainty, and not just an inflation hedge. Rosenberg made these comments in a video interview with Consuelo Mack.
Rosenberg recently conducted another interview with the Wall Street Journal. Rosenberg is much more bearish in this interview. Rosenberg states that "if you do not believe there is going to be a double dip maybe it is because the first recession never ended. Rosenberg stated that the cyclical upturn was false because it was all predicated oninventory cycle and stimulus. Rosenberg is also calling for 11% unemployment, a 2% yield on the ten year, the dow at 9,000 in a years time.
Rosenberg recently conducted another interview with the Wall Street Journal. Rosenberg is much more bearish in this interview. Rosenberg states that "if you do not believe there is going to be a double dip maybe it is because the first recession never ended. Rosenberg stated that the cyclical upturn was false because it was all predicated oninventory cycle and stimulus. Rosenberg is also calling for 11% unemployment, a 2% yield on the ten year, the dow at 9,000 in a years time.
