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Stock markets are ignoring reality - Ronsenberg

David Rosenberg Says the Bulls Are in Fantasyland

  • David Rosenberg bluntly told attendees Monday at John Mauldin’s Virtual Strategic Investment Conference 2020 that the stock rallies in recent weeks ignore reality and don’t recognize that the United States is likely entering a depression, facing double-digit unemployment for at least three years, secular changes in consumer spending and saving, and deflation followed by stagflation.

  • The problem I have is that it's pure fantasy to think that normalized earnings are not going to be seriously dented by the likely permanent loss of some 10 million workers in the future from what the baseline was prior to the crisis, which means lost labor income of roughly $1 trillion."

http://puzzlefinancialadvice.com.au/2020/Articles/Rosenberg_Presentation_to_John_Mauldin_Conference_200512.pdf

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