Famed economist warns extreme stock valuations point to negative returns ahead
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David Rosenberg warns of negative S&P 500 returns due to high valuations.
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The Shiller CAPE ratio on the index is at its third-highest level ever.
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At the same time, recession risks are rising as the labor market slows, Rosenberg warned.
David Rosenberg isn’t always right. The founder of Rosenberg Research, who rose to fame after calling the 2008 recession, regularly expresses a bearish outlook for the economy and markets that often don’t come to fruition.
But in a world where bullish forecasts are the consensus among Wall Street’s top equity strategists, it can be prudent to heed Rosenberg’s warnings. While his…
