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Gluskin Sheff's Rosenberg: Bear Stock Market 'Still Likely a Few Years Away'

By    |   Monday, 22 September 2014 12:11 PM

While some financial market participants believe the stock market will soon tumble from the record highs reached once more by major indexes Friday, David Rosenberg, chief economist and strategist at Gluskin Sheff + Associate, isn't one of them.

"No doubt equities will have an adjustment phase as the discount rate used to discount future profits moves higher over time," he writes in a commentary obtained by CNBC.

"But bear markets don't start until investors see the whites of the eyes of the recession, and that is still likely a few years away."

Editor’s Note:
Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now


To be sure, with the Federal Reserve now focusing on the timing of its first interest rate hike, investors should avoid interest rate-sensitive stocks, Rosenberg advises.

"The rising likelihood of stronger-than-expected growth in the next several months means the high-priced defensive areas of the stock market will face the prospect of an outward rotation into the more cyclical segment, though the parts that are more domestic-focused . . . make the most sense."

Andrew Slimmon, a portfolio manager at Morgan Stanley Wealth Management, isn't looking for stocks to fall either. "There is some buying power out there," he told The Wall Street Journal. "The market is going to have a good fourth quarter, because we have cleared some hurdles here."

The S&P 500 stood at 1,990 Tuesday midday, down 0.2 percent from Monday. It has returned 8.8 percent so far this year.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

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While some financial market participants believe the stock market will soon tumble from the record highs reached once more by major indexes Friday, David Rosenberg, chief economist and strategist at Gluskin Sheff + Associate, isn't one of them.
Rosenberg, bear, stock, market
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2014-11-22
Monday, 22 September 2014 12:11 PM
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