At the Strategic Investment Conference 2018, David Rosenberg of Gluskin Sheff warned investors of the coming mean reversion in the stock market, which can push down equity prices by 20% or more.
Rosenberg also admitted that this is one of the strangest rallies of all time. That’s because all asset classes went up, even the ones that are inversely correlated:
Whether it was bank stocks, emerging market bonds, Ant stocks, the CRB, oil—every single market, even global bonds. Barkley's Bond Index globally generated a 7.5% return. The least-risky asset class in a risk-on year generated an equity-like return of 7.5%.
He thinks that a breaking point is a year away and so investors should start taking precautions.Read More