David Rosenborg
David Rosenberg: Stick to safety and income at reasonable price
Here is David Rosenberg’s advice for the turbulent 2012: Stick to safe money management strategies that focus on income. They are defensive and cushion volatility. Focus on safe yield Dividend equities and preferreds Low debt/equity and High liquid asset ratios Oil and Gas Royalties and REITs Low fixed costs and high variable costs, oligopolistic Alternative [...]
David Rosenborg:Net Outflows from equities to bonds
I was puzzled why Mr Rosenborg would comment on this when the volume over the past week as low. But it is pretty bad eventually if volume doesn’t picked up even if we end up with more up days: Stock funds suffered a net outflow of $5.6 billion last week — $5.2 billion from U.S. [...]
David Rosenborg:Sovereign Risk is gonna hit markets hard
An interesting abstract gotten off Clusterstock: We are not sure if this is a well known “fact”, but the U.S. government has a record$2.5 trillion of its debt, including bills, bonds and notes, rolling over in 2010. That,my friends, is 35% of the outstanding level of Uncle Sam’s marketable obligations having to be refinanced in [...]
Rosenborg:Why this is not the beginning of another secular bull market
David Rosenborg doesn’t think we are in a secular bull market. This is either gonna make him more famous or gonna make him look pretty stupid: P/E Multiples were 8x, not 26x. Dividend yields were 6%, not sub-2%. The stock market was trading at a discount to book, not a 2x premium. Monetary policy was [...]
David Rosenborg:Unemployment may go to 13%
There are serious structural issues undermining the U.S. labour market as companies continue to adjust their order books, production schedules and staffing requirements to a semi-permanently impaired credit backdrop. The bottom line is that the level of credit per unit of GDP is going to be much, much lower in the future than has been [...]
