Tuesday, October 5, 2010

Economists Should Never Manage Portfolios (2)

I see David Rosenberg is still arguing with the equity markets.

In his latest bearish masterpiece entitled Globe & Mail - An unbelievable recovery is just that, Rosenberg admits the "bulls now have the upper hand" and "the bulls are missing the possibility the economy will weaken".

I love this guy because he is such an easy target - the bulls NOW have the upper hand? Where has this guy been over the past 18-months? The average bank stock is up 50% - some at new 52-week highs - Scotia and T-D are close to all-time highs. The metals and mining complex is at all-time highs. The small cap indices in the U.S. and Canada are on a tear. How about those transports with CNR and UPS trading close to all-time highs. Another question, why is Rosenberg so hyper-focused on the U.S. economy? Does the term "Global Economy" mean anything to this guy? According to research by McKinsey & Co there are two billion middle-class non-English speaking consumers in the world who wish to live like we here in North America. Do you recognize this important reversal pattern in the monthly iShares MSCI Pacific ex-Japan (EPP) ETF?


Prudent Man said...

Hi Bill, looks like a reverse head and shoulders breaking the neck line to the upside. I would also like to add that there are other advisories out there that spew doom and gloom ie; Long Wave, Elliot Wave, others. I really like your objective and technical observations. Wished I'd listened and acted more to your writings in the summer than this other lot.

Ongiara said...


A long term trendline break?

Gettingtechnical.com said...

Hi Ongiara

I think PrudentMan has it - an inverse head & shoulders and a bullish signal - let us CC David Rosenberg

Bill c