David Rosenberg, founder and president of Rosenberg Research, recently joined ‘Money Movers’ to discuss the bond trade, the Federal Reserve’s pivot, and more.
### Bond Trade
Rosenberg noted that the bond trade has experienced a significant shift. Yields have risen sharply in recent months, and the market is now pricing in a much higher risk premium. He believes that this shift is due to a combination of factors, including the Fed’s decision to raise interest rates and the market’s growing concerns about inflation.
### Federal Reserve Pivot
Rosenberg believes that the Federal Reserve is now beginning to pivot away from its aggressive rate hike campaign. He pointed to the Fed’s decision to raise rates by only 25 basis points at its last meeting as a sign that the central bank is becoming more cautious.
### Market Outlook
Rosenberg is cautious on the market outlook. He believes that the economy is likely to slow down in the coming months, and that this will weigh on corporate earnings. He also believes that the Fed’s pivot will not be enough to prevent a recession.
### Conclusion
David Rosenberg is a respected economist with a long track record of success. His insights on the bond trade, the Federal Reserve, and the market outlook are well worth considering.
