Rosenberg, Gluskin Sheff's Long-Time Bull, Begins to Have Doubts

Tuesday, 19 Aug 2014 08:06 PM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
David Rosenberg, chief economist and market strategist for Gluskin Sheff + Associates, turned bullish on the U.S. economy and stocks in 2012. But now he's starting to have second thoughts.

"For a former bear-turned-bull . . . , the last few weeks have been more than just a bit frustrating," he wrote in a commentary obtained by

While he's not returning to the dark side now, Rosenberg said he has "no intention of sitting on a stale view," comparing his reassessment to a ratings agency putting "a doubtful debtor on credit watch."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

As for U.S. economic growth, "I don't think we're going to see a significant rebound—call it something better than 3 percent [growth] for the second half of the year," Rosenberg said.

"The spending numbers are lagging well behind whatever we're seeing in unemployment and income." Retail sales were unchanged in July, the worst showing in six months.

Stocks are vulnerable to a correction, but the long-term outlook is good, Rosenberg wrote. As long as the Federal Reserve keeps easing and there's no recession, "the path of least resistance is going to be up," he said.

Meanwhile, Irwin Kellner, chief economist for MarketWatch, says that stagnant consumer spending has mixed implications. "The good news is that it might stay the Federal Reserve’s hand when it comes to raising interest rates," he wrote.

"On the other hand, the bad news is that this implies that the U.S. economy will remain in the dumpster, since consumer spending now accounts for fully 70 percent of our GDP."

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

Related Articles:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Meredith Whitney's Hedge Fund Reportedly in Turmoil

Saturday, 20 Dec 2014 11:43 AM

The hedge fund Meredith Whitney started last year after she became one of Wall Street's best-known analysts is in turmoi . . .

Yellen’s Patience Echoes Greenspan 2004 Run-Up to Rate Liftoff

Saturday, 20 Dec 2014 11:40 AM

Federal Reserve Chair Janet Yellen is taking a page from predecessor Alan Greenspan's 2004 playbook, a step that appears . . .

John Kasich 2016: 7 Key Political Positions of GOP Presidential Hopeful

Friday, 19 Dec 2014 22:22 PM

John Kasich has been involved in the national scene since the 1980s as a U.S. congressman and popular governor from Ohio . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved