Tags: Rosenberg | bull | bear | economy

Gluskin Sheff's Rosenberg: A Reformed Bear Gets Skewered for Turning Bullish

By    |   Wednesday, 30 October 2013 08:12 AM EDT

Gluskin Sheff + Chief Economist David Rosenberg says he is getting a lot of unfriendly responses since throwing in the towel on his once-dependable bearish outlook and converting to a stock market bull.

Rosenberg, previously a longtime skeptic on the U.S. economic recovery who advised investors to stick with government bonds and warned of a double-dip recession, strongly reversed course in August when he pronounced that the bond bull market had expired, the Financial Post reported.

"I think there is a firmer floor under the [U.S.] economy than there's been at any other time in the past four years," Rosenberg says now.

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It is a big turn of events for an economist who in 2012 declared the "cult of equity" was over.

Some of his followers don't appreciate the new Rosenberg.

"Some of the comments that I was getting from some of the readers were just astonishing — calling me a turncoat, accusing me of succumbing to pressure," he told the Post.

Previously, when he was in the bear camp, he likewise got complaints from bulls, but they were rarely as insulting as those from his new critics, Rosenberg noted. "So this time around, it was almost like I was being accused of changing religions, that's how intense it was."

The Post said some of Rosenberg's critics conclude he was bearish for far too long. He continued to call for the Standard & Poor's 500 to fall considerably below 1,000 — even after it was up 140 percent — although it had last done so back in 2009.

Other so-called perma-bears still have not given up their view, despite 2013's heady stock market gains.

Societe Generale's bearish Albert Edwards has issued a fresh warning about asset prices, saying new bubbles could be forming, Barron's reported. Edwards wrote that financial companies are once again getting over-leveraged, and that real estate prices in such diverse markets as London, Germany and China have reached unrealistic levels.

Likewise, John Hussman, president of Hussman Funds, is staying true to his dark and brooding colors.

Hussman believes the true value of the S&P 500 is about 40 percent lower than its current levels.

"If you picture a small child throwing a stone upward and out over the edge of the Grand Canyon, you'll get a general idea of the market trajectory that we expect over the completion of this cycle," Hussman wrote in his weekly commentary recently.

Editor’s Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See If You Qualify)

Related Stories:

Gluskin Sheff's Rosenberg Turns Bullish, Upsetting Some Customers

The 'Teflon Bull' Market Powers On, But Is It Truly Unstoppable?

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InvestingAnalysis
Gluskin Sheff + Chief Economist David Rosenberg says he is getting a lot of unfriendly responses since throwing in the towel on his once-dependable bearish outlook and converting to a stock market bull.
Rosenberg,bull,bear,economy
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2013-12-30
Wednesday, 30 October 2013 08:12 AM
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