Tags: david rosenberg | recession | unavoidable | this year

David Rosenberg: Recession Virtually Unavoidable This Year

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By    |   Thursday, 03 January 2019 05:27 PM

Investment guru David Rosenberg is warning savvy investors to prepare for the worst in the new year.

"We're going into a recession," Gluskin Sheff's chief economist and strategist recently told CNBC. "I think it will be this coming year," he said.

"We've got more than 80 percent chance of recession just based on the fact the Fed is tightening policy," he said.

"This tightening of financial conditions that we've seen in the markets is going to end up having a cascading effect on the economy for the first few quarters of this year," he said.

"The severity of the recession doesn't give you a get out of jail free card when it comes to how the markets are going to respond," he said.

According to Rosenberg, getting out of the recession will be a serious dilemma for Washington, CNBC warned.

"How are we going to stimulate fiscal policy? We already did that at the peak of the cycle," Rosenberg said. "We don't have the fiscal ammunition."

Rosenberg may not be alone in his fear of a looming recession.

Data from tech giant Google shows that people are searching for “recession” at almost the same level they were in November 2009, a few months after the end of the Great Recession, The Washington Post reports.

Google tracks search terms dating back to 2004 and scores them 100 at their peak.

Searches for “recession” peaked in January 2008 and reached one-third of that mark in November 2009.

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Investment guru David Rosenberg is warning savvy investors to prepare for the worst in the new year.
david rosenberg, recession, unavoidable, this year
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2019-27-03
Thursday, 03 January 2019 05:27 PM
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