Recession Warning: Fed Tightening Cycles Lead to Economic Downturns

David Rosenberg, a well-known economist, believes that the United States is in a recessionary bear market. He predicts that the S&P 500 will eventually bottom at 3100, and he has positioned his personal portfolio accordingly.

Rosenberg's predictions are based on his analysis of the Federal Reserve's tightening cycle, which he believes will lead to a recession. He also points to the recent failures of Silicon Valley Bank, Signature Bank, and First Republic as evidence that the economy is weakening.

Rosenberg's views are in contrast to those of many other economists, who believe that the Federal Reserve can engineer a soft landing. However, Rosenberg's track record suggests that he is worth listening to. In 2007, he predicted the subprime mortgage crisis, which turned into the Global Financial Crisis.

Investors who are concerned about the economy should pay attention to Rosenberg's predictions. They may want to consider reducing their equity exposure and increasing their cash holdings.

Recessions & financial crises go hand in hand after Federal Reserve tightening cycles. Outspoken economist Dave Rosenberg sees evidence of both and advises defensive investments 

WEALTHTRACK 1947 broadcast on May 19, 2023