The so-called ’08 crisis strategist says ‘something is hiding’ is a sign of market swings

“After this tug-of-war rally anywhere yesterday, I began to think about how the current market volatility and instability is so similar to what we saw in January and February of this year,” wrote David Rosenberg, now a longtime strategist running his own firm Rosenberg Research. .

Rosenberg is often referred to as a bear, and has had a glass-half-full view for most of this year. And it is also known to predict the subbriem mortgage crisis, while Bubble, Merrill Lynch – and one of the most capable people and works for the victims.

While investors around the world knew about the novel coronavirus in January and February – few guessed how bad it would turn out. Rosenberg also points out that markets “tank” in February, but only ends when the Fed and the Treasury and Congress join hands to ease the all-time very tight policy.

P te investors sometimes prefer to associate the bond market with signals and stocks with sound.

But Rosenberg thinks the recent stock market silence should be a cause for concern.

“Does this behavior seem normal to you?” He asked. “Do you think there is a reason for all this instability? Could it be a sign that something is hiding in the corner? ”

It’s not clear what that “something” might be, although the U.S. From the presidential election to the Brexit deal, there is an endless list of natural disasters. And underneath it all are rising global COVID-19 case counts that could forget the health system and the SEP economy – which predictors expect to get worse as winter approaches.

Rosenberg wrote, “Fatigue has subsided, people are getting sluggish, but the impact on economic activity is still one of the stretches.” “And as we go into autumn and then winter, the situation can only get worse. And at the end of the year, market movements, say you get out of the dodge – like, risk. “

Read ahead: “If the stock market no longer has the Fed, it needs an economy,” says David Rosenberg.