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RECESSION EVIDENCE IS BUILDING, TIME TO GET DEFENSIVE, SAYS INFLUENTIAL ECONOMIST DAVE ROSENBERG

David Rosenberg, a well-known economist, believes that the United States is in a recessionary bear market. He predicts that the S&P 500 will eventually bottom at 3100, and he has positioned his personal portfolio accordingly.

Read more: RECESSION EVIDENCE IS BUILDING, TIME TO GET DEFENSIVE, SAYS INFLUENTIAL ECONOMIST DAVE ROSENBERG

Rosenberg’s predictions are based on his analysis of the Federal Reserve’s tightening cycle, which he believes will lead to a recession. He also points to the recent failures of Silicon Valley Bank, Signature Bank, and First Republic as evidence that the economy is weakening.

Rosenberg’s views are in contrast to those of many other economists, who believe that the Federal Reserve can engineer a soft landing. However, Rosenberg’s track record suggests that he is worth listening to. In 2007, he predicted the subprime mortgage crisis, which turned into the Global Financial Crisis.

Investors who are concerned about the economy should pay attention to Rosenberg’s predictions. They may want to consider reducing their equity exposure and increasing their cash holdings.

Recessions & financial crises go hand in hand after Federal Reserve tightening cycles. Outspoken economist Dave Rosenberg sees evidence of both and advises defensive investments 

WEALTHTRACK Episode #1947 broadcast on May 19, 2023

Listen to the audio-only version here:

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DAVID ROSENBERG

ACTION POINT

OWN SOME SAFE HAVEN INVESTMENTS IN YOUR PORTFOLIO

Cash for protection & to redeploy when stocks decline

Long-term Treasuries

  • World’s safe haven investment of choice because of liquidity
  • The assumption is that interest payments will be made & principal paid upon maturity
  • Bond yields decline & prices go up in recessions
  • 10-year or 30-year maturities will benefit as rates decline 

Gold

  • Go-to asset in times of uncertainty in the world
  • Rosenberg owns gold coins in a personal portfolio
  • Easier alternatives are ETFs
  • Established gold ETFs:
    • SPDR Gold Shares ETF (GLD)
    • iShares Gold Trust ETF (IAU)

ONE INVESTMENT

LIFE’S ESSENTIALS

BUY Farmland

  • Essential agriculture
  • Security of supply 
  • Sacrifice liquidity

ARCHIVES

David Rosenberg from the WEALTHTRACK Archives:

WEB EXTRA

THE PRICE OF BEARISHNESS

Why doesn’t Wall Street like bears? Outspoken current bear, Dave Rosenberg, responds.