David Rosenberg says it’s time for investors to play it safe amid an historic period of low interest rates.
The Gluskin Sheff + Associates chief economist told BNN Bloomberg on Thursday that a capital spending-led recession began last quarter and that if one must be in the equity market, staying defensive is key.
“If you’re going to be in the equity market – and some people have to be – be in very liquid blue chip dividend-paying non-cyclical sectors of the stock market. That’s where I’d be right now,” Rosenberg said in an interview with BNN Bloomberg’s Amanda Lang.
“The endgame: Who knows? But I know for the time being, you want to be defensive and you want to be very liquid.”
Rosenberg’s comments come as markets grapple with global trade war fears and mounting pressure on central banks worldwide to cut interest rates further.
“We are walking through history right now … People are talking about how normal it is, and it’s okay to have negative interest rates without looking at what the ramifications are,” Rosenberg said.
“You’re taking a look at nationalism, populism … The world order is breaking down and that’s why I think you own gold, you own silver, you own high-quality long-duration bonds.”
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