Pragmatic Capitalism

Practical Views on Money, Finance & Life

David Rosenberg: Why the Market Keeps Rallying

Good thoughts here from David Rosenberg who appeared on Surveillance with Tom Keene yesterday.  He says the market is rallying because it’s been given no reason to decline.  In essence, the key tail risks have been removed from the market:

  • Europe didn’t fall apart.
  • The fiscal cliff didn’t destroy the US economy.
  • China achieved a soft landing.

He also touched on the recent declines in gold.  Rosenberg says that the brighter outlook means golds hedging component no longer serves its purpose.  I’d add that a better outlook means less central bank easing and the potential for higher real rates.

See the full interview here:


Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services.He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.
Cullen Roche

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