‘The stock market no longer thinks it needs the economy if it has the Fed,’ David Rosenberg says
We’ve been headed in this direction for a long time. But now, as the real economy struggles, not unlike how it did during The Great Recession, the stock market is roaring because it’s being juiced by the Federal Reserve. Just like it was during the Great Recession.
…Rosenberg is happy to remind you. “Consumer activity is starting to cool off,” he notes, the holiday shopping season is likely to be “weak,” consumers are likely turn decidedly frugal, 68% of unemployment insurance recipients make more on the dole than while they were working, the U.S. now has the biggest debt-to-GDP ratio since World War II, with a much older population, lower-for-longer yields won’t support pensioners, and on and on.
This article was originally posted here: https://www.ac2news.com/2020/07/the-stock-market-no-longer-thinks-it-needs-the-economy-if-it-has-the-fed-david-rosenberg-says/.