Rosenberg: Don't Confuse Slower Decline For A Recovery
Bloomberg:
Rosenberg Says Don’t Mistake Slower Economic Slide for Rebound
Investors shouldn’t mistake an economy that’s sliding less rapidly downhill for one that’s poised to start climbing, say Bank of America Corp.’s David Rosenberg and Deutsche Bank AG’s Joseph LaVorgna.
Improvements in consumer spending and home sales have been taken by some investors as signs that the recession, now in its 17th month, may be near a turning point...
Even when the economy does hit bottom, it may take a while before robust growth resumes, LaVorgna, chief U.S. economist at Deutsche Bank Securities in New York, said in an April 6 interview. “A bottoming out is no longer consistent with an imminent recovery, as it has been in the past...
“...I am decidedly uncomfortable forecasting a sharp and determined resumption of growth in the coming quarters,” said Federal Reserve Governor Kevin Warsh in an April 6 speech in Washington.
Rosenberg agrees. “I really don’t believe the contours of this recession will achieve clarity until we’re in the opening months of 2010 at the earliest,” said Rosenberg. That leads him to predict a stock market bottom sometime in the fall...
Rosenberg Says Don’t Mistake Slower Economic Slide for Rebound
Investors shouldn’t mistake an economy that’s sliding less rapidly downhill for one that’s poised to start climbing, say Bank of America Corp.’s David Rosenberg and Deutsche Bank AG’s Joseph LaVorgna.
Improvements in consumer spending and home sales have been taken by some investors as signs that the recession, now in its 17th month, may be near a turning point...
Even when the economy does hit bottom, it may take a while before robust growth resumes, LaVorgna, chief U.S. economist at Deutsche Bank Securities in New York, said in an April 6 interview. “A bottoming out is no longer consistent with an imminent recovery, as it has been in the past...
“...I am decidedly uncomfortable forecasting a sharp and determined resumption of growth in the coming quarters,” said Federal Reserve Governor Kevin Warsh in an April 6 speech in Washington.
Rosenberg agrees. “I really don’t believe the contours of this recession will achieve clarity until we’re in the opening months of 2010 at the earliest,” said Rosenberg. That leads him to predict a stock market bottom sometime in the fall...