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'Castles built on sand': Famed economist David Rosenberg says investors are being too reckless as stocks rally a?? and warns that a vicious long-term bear market is far from over

'Castles built on sand': Famed economist David Rosenberg says investors are being too reckless as stocks rally a?? and warns that a vicious long-term bear market is far from over




David Rosenberg — the famed economist and founder of Rosenberg Research — thinks investors are putting too much blind faith in the Federal Reserve's ability to prop up a "frothy" market.




In addition to a perceived Fed-backstop, Rosenberg notes weak market fundamentals and lofty valuations as reasons for his concern.




Rosenberg thinks the market is in the midst of a short-term bounce, not a long-term rally.




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"You've got a tremendous amount of speculation."
That's what David Rosenberg, the famed economist and founder of Rosenberg Research, said in a recent Cambridge House interview when asked where he was seeing the most nefarious action in the market today.
To Rosenberg, the Federal Reserve is responsible for driving the exuberant behavior. In his mind, the Fed's actions are signaling to investors that equity purchases may be coming down the pike, thus, creating a backstop for any hiccups or obstacles that may emerge. The Bank of Japan has enacted similar policies by actively buying exchange-traded funds.
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