Rosenberg: Stocks Are Overvalued And "Tremendously Risky"

Henry Blodget

David Rosenberg has been wrong about the market since March, but he isn't backing down. Here he is in the FT, as bearish as ever: Usually at bear market troughs, the S&P 500 goes to silly cheap levels. It did not this time round and, six months and 60 per cent later, there is yet again, in 2007 style, tremendous risk in this market. Never before has the stock market surged this far, this fast, between the time of the low and the time the recession (supposedly) ended. What is “normal” is that the rally ahead of the recovery is 20 per cent. This market is now trading as if we were in the second half of a recovery phase, yet it has not even been fully ascertained the downturn is over...