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Wednesday’s interview was with David Rosenberg, chief economist and strategist at Gluskin Sheff.
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BUSINESS INSIDER: To what extent do you think poor weather has impacted this winter’s economic data?
DAVID ROSENBERG: I would say that the slowing is 50% weather and 50% fundamental with respect to inventory adjustment/savings rate and housing (tight mortgage lending).
BI: What’s the big story that nobody is talking about right now?
DR: That energy prices are on a discernible upward path.
BI: Are you optimistic about Janet Yellen as Fed chair?
DR: I’m optimistic that her policies will in the end generate far more inflation than is generally acknowledged.
BI: The stock market is roaring back to all time highs. Do issues in EM not have as big an impact on U.S. markets as people argued a few weeks ago?
DR: EM has a marginal impact at best… look at the 1997-98 Asian crisis: GDP growth averaged 4%, the unemployment rate went from 5% to 4.5% and the S&P 500 ran up 20%… only became an issue towards the end of the crisis when it became a domestic financial event with the turmoil surrounding LTCM.
BI: What’s something you’ll be watching this week and next?
DR: The February employment report. Whether the S&P 500 can break back above the mid-January highs on a closing basis. Beyond that, the March-April data will tell the tale as to just how much the latest poor data flow was a weather report.
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