Gluskin Sheff economist Dave Rosenberg has been warning of a double-dip for months. Today his investment letter sheds a little light on what the bulls are thinking and why they’re gathering some momentum.And he picked a good day. With the Europe stress tests over, and the BP oil spill winding down, it seems the big scare stories are coming out of the market.
Of course he’s still bearish: “From our lens, this is still a meat-grinder of a market. The bulls have the upper hand, but only until the next shoe drops in this modern-day depression and post- bubble credit collapse. The S&P 500 is still down 2% for the year, the Dow by 1%, the FT-SE and Nikkei by 11%, the Hang Seng by 5% and China by over 20%.”