Gluskin Sheff's Rosenberg Turns Bullish, Upsetting Some Customers

Tuesday, 22 Oct 2013 08:46 AM

By Dan Weil

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David Rosenberg, chief economist of Gluskin Sheff + Associates, has turned bullish toward the U.S. economy and stock market after 10 years of bearishness.

And some of his clients aren't taking it so well.

Rosenberg shifted his view this spring, telling customers to buy stocks and sell Treasurys, partly because of the labor market's rebound, The Wall Street Journal reports.

Editor’s Note:
Opinion: Retirees to Be Hit With Social Security Cuts

So how did clients react?

"Cancel my account, and tell Dave I don't recognize his work," one of them e-mailed Rosenberg recently, according to The Journal. "He used to be the straightest shooter out there. . . . It is too much for me to have another cheerleader."

Rosenberg received dozens of similar responses, the paper reports.

He's a bit taken back by it all.

"I'm finding out that a lot of my loyal readers were never really interested in my analysis," Rosenberg tells The Journal. "I spent over 10 years battling the reputation of being a radical perma-bear. Now I make a subtle shift, and I'm fighting the perception that I'm a perma-bull."

To be sure, Rosenberg hasn't gone hog wild, recommending that clients invest just over half of their portfolios in stocks, up from the 35 percent he recommended last year.

Rosenberg became more bullish because unemployment is declining, deflation is no longer a concern, more workers are leaving the work force not just because they are frustrated over job prospects and the probability of an economic downturn decreased even though the Federal Reserve implemented aggressive monetary policy, The Journal states.

Others like U.S. stocks too.

"What we know is that earnings are continuing to come through pretty strongly and the Fed continues to promote asset growth," Jim King, president of National Penn Investors Trust, tells Bloomberg.

"Those two things are the drivers of seeing higher stock prices over the next several quarters."

Editor’s Note: Opinion: Retirees to Be Hit With Social Security Cuts

Related Stories:

Experts See Factors in Place for Bull Stock Run

The 'Teflon Bull' Market Powers On, But Is It Truly Unstoppable?

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