David Rosenberg and Richard Russell: Opposing Views on Bonds

By on April 20, 2010

Prieur du Plessis recently wrote an article highlighting the viewpoints of David Rosenberg and Richard Russell with regards to the future outlook for bonds. Rosenberg points out several correlations which make him bullish on bonds (mainly because he believes inflation is going down):

• Fed policy 88%

• Core CPI inflation 75%

• CPI inflation 64%

• Core PPI inflation 58%

• PPI inflation 40%

• Budget deficits 39%

• CRB Index 33%

• Oil prices 25%

• ISM 12%

Richard Russell bases his bearish opinion of bonds on his interpretation of a head and shoulders chart pattern.

Click on chart for larger image:

Source: FavStocks

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