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Hyperinflation warning is “totally ridiculous:” David Rosenberg

Economist David Rosenberg suggests that hyperinflation warnings are unreasonable.

Long-time bears, known for their contrarian views, have accused price increases. COVID-19Induced supply side shock. According to Rosenberg, it is a mistake to think that the impact will cripple the economy and lead to runaway inflation.

“I’m actually turning to the proposal,” said CNBC’s president, Rosemberg Research.Trading country“Monday.” It’s completely ridiculous. “

Twitter and Square CEO Jack Dorsey is one of the latest executives Sound a runaway inflation alert.. He pushed out a warning on Twitter last Friday.

“They are [inflation headwinds] It won’t be resolved at some point, but in reality I think I’m exempting myself from respecting what history tells you. “

Rosenberg may be avoiding the hyperinflationary camp, but is still worried about the market and the economy. He’s just looking at another kind of problem facing the US economy: deflation.

“What if monetary policy shifts and the stock and housing markets are revised at the same time, and this will replace the view of hyperinflation next year,” he said. “People will be surprised when the Fed shifts course and the liquidity situation becomes tighter …. Asset deflation will occur and it will pass through i.Generalized deflation in the economy.. “

He also warns Stocks are too expensive Currently based on evaluation.

“The market is rising far beyond what even strong earnings should be justified, thanks to the Fed,” Rosenberg added. “Well, the Fed is about to change course.”

on Monday, Dow When S & P 500 It ended with a record high. The S & P 500 surged 108%, while the Dow rose 96% from the pandemic lows.

“Everyone is chasing the market, so my advice is to start removing chips from the table at these levels,” Rosenberg said.

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Hyperinflation warning is “totally ridiculous:” David Rosenberg

Source link Hyperinflation warning is “totally ridiculous:” David Rosenberg

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