Market Watch interviewed David Rosenberg, who was a former chief North American economist at Merrill Lynch and is now president of Toronto-based Rosenberg Research.
His US economic outlook is blunt:
- “There is no chance we’re having a soft landing in the context of the most pernicious tightening by the Fed since the Paul Volcker years,”
- Think of the ridiculous situation we’re in. The Fed is pegging the funds rate in a 5.25% to 5.5% range. The 10-year Treasury yields 3.8%. What is the bond market telling you? The bond market is not telling you the same goldilocks story the stock market is telling you. When we look at the action in most raw industrial prices, including oil CL00, +2.40%, over the past year, it isn’t a very positive economic synopsis. Then you have to ask, what is going on with the U.S. dollar if things in America are so hunky-dory?
And, on equities:
- the stock market seems to be the odd man out
The piece may be gated, but if you can access it its worth a read: