Thursday, November 17, 2011

David Rosenberg: Deflation Coming

"What is the next major macro theme? Deflation. Just a short four months ago, we were discussing how the macro backdrop was becoming ‘recessionary’. The U.S. economy may not have moved into recession yet, but the pressures beneath the system are building. We have been emphasizing high-quality bonds and defensive income-oriented stocks - recommendations that were made even before it became clear that, not only was a recession coming, but we were confronting the next leg of the most intense deleveraging cycle in modern history. Many of these themes have played out rather well. The next crucial issue, especially now that so many assets and securities have moved to price in a recession scenario, and a global one at that, is to identify the next major macro theme and the appropriate investment strategy to deploy." (David Rosenberg is Chief Economist & Strategist at Gluskin Sheff. Prior to joining Gluskin Sheff in 2009, Mr. Rosenberg was Chief North American Economist at Bank of America-Merrill Lynch in New York and prior thereto, he was a Senior Economist at BMO Nesbitt Burns and Bank of Nova Scotia.)

The Good News:  is a secret!