Bloomberg News: Gold Is a 'No-Brainer,' in Rosenberg's Bear-Case Portfolio

Article by Divya Balji inBloomberg News

Shelter in gold, bet on emerging markets and buy “bonds in drag.”

So says David Rosenberg who believes an economic slowdown is on its way despite enduring job gains, easing trade tensions between the U.S. and China, and record-breaking stock markets in North America.

“If things are so great, why did the Fed have to cut rates last year?” he said in an interview at Bloomberg’s Toronto office. “If things are so great, why did the Fed have to embark on QE4, that we’re not supposed to call QE4?”

“Last year, was like, just throw a dart,” he said. “Right now, it’s indiscriminate buying. Investing isn’t supposed to be like that. Investing isn’t supposed to be easy.”

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Gold

“Gold is a place you want to be. I think that it’s partly because its inversely correlated with interest rates. But it’s also an insurance policy when things go wrong,” he said. “There’s no such thing as a no-brainer, but this is close.”

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