David Rosenberg, "the onus is now on the bulls"

By on July 9, 2009

David Rosenberg, former Merrill Lynch economist, was on CNBC Tuesday and said the market had priced in an earnings recovery that won’t occur until 2012. He said it was quite possible the S&P 500 could fall below the March 9th low and another fiscal package won’t save the day. Rosenberg argued that we’ve had an 18 year bull market and are now halfway through an 18 year secular bear market. In his words, investors are going to need to “rent,” and not own the rallies.

Rosenberg remarked that the current leadership is too focused on the short term and not on what will sustain future productivity growth. He mentioned the widespread belief of a “magic bullet” that will generate economic recovery, which he believes doesn’t exist.

In the video, Rosenberg talks about some historical precedents to bolster his view:

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