Rosenberg: How the Three D’s are Holding Back the Economy
David Rosenberg of Gluskin Sheff was on Consuelo Mack’s WealthTrack this weekend to offer his investment and economic outlook. Rosenberg explains how the three D’s of deleveraging, deflation and demographics will hold back the economy. He also offers his perspective on a broad range of topics including corporate earnings, Europe, the Presidential elecion and several other macro topics. Although he’s not terribly optimistic about the economy in the near-term he does think this leg down in the economy will ultimately prove to be a good buying opportunity.
Regarding specific investment ideas he provides the outlook for SIRP (Safety and Income at a Reasonable Price):
- Corporate bonds
- High quality stocks
- Income generating resource plays
Cullen Roche
Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.
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4 Comments
The consensus of financial advisor community is that the corporate bond market, and all bonds except maybe junk, is overpriced and overdue for a top. One thing that Rosenberg has gotten right over the past 4 years is that he has been consistent in his advice to buy and hold corporate bonds, which are in a bull market and have done almost as well as equities, with a lot less volatility. He’s not an equity market timer, but I like him a lot.
THis is a good interview. Rosenberg is becoming much more balanced in his views which is nice to see.
Cullen, we haven’t heard of Zulauf for some time yet! I remember seeing a table of a lot of hedge funds that were consulted by Barron’s and Zulauf was in the top3 at least, and perhaps even #1 over a 10 year period.
This video confirms that Rosenberg is, along with e.g. Cullen Roche, Mike “Mish” Shedlock, Robert Kessler and A. Gary Shilling, what I would call, a “Soft (core) deflation” deflationista.
Whereas Robert Prechter and James (“Government bond bubble”) Grant are “Hardcore” deflationistas and have a much more grim view on events coming down the pike.