David Rosenberg Provides a Counterpoint to James Grant’s New Bullishness
David Rosenberg disagrees with James Grant’s surprising switch to bull and Grant’s recent article justifying his view.
Basically (Extreme Readers Digest version):
- Any recovery in earnings has been well discounted far in advance of it actually occurring.
- Grant ignores the long-run effects of the deleveraging process.
- Grant mentioned the bigger the drop, the zippier the bounce. However, he compares this episode to the Great Depression, when it’s not even close.
- Rosenberg questions whether government support of key industries is necessary or desirable.
Source:
http://elnuevoparquet.com/redsocial/moneymanagement/2009/09/23/is-jim-grant-the-latest-to-be-drinking-the-kool-aid/
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