We put 7 burning questions to top economist David Rosenberg. Here's what he said about US stocks, crypto, house prices and the threat of recession.
David Rosenberg answered seven burning questions about markets and the economy in an interview with Insider this week.
In other words, the Fed's near-zero interest rates and epic bond-buying spree during the COVID-19 pandemic, combined with the US Treasury dispatching stimulus checks and bailing out companies, stoked historic demand. Meanwhile, the virus' disruption of international supply chains, coupled with Russia's invasion of Ukraine roiling food and fuel production, choked supply.
Moreover, he highlighted the US central bank's stated expectation that unemployment will rise to 4.6% — a scale of increase that has historically only occurred during prolonged downturns. Stocks fell sharply in 2022, but have jumped so far this year. Rosenberg described the rebound as a"very whippy and junky, short-covering, bear-market rally," and warned investors face a"meat grinder" of a year.
"If 2022 was about multiple contraction from nosebleed levels, 2023 is when interest rates percolate through the economy and into corporate earnings," he said.
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