David Rosenberg: GDP Won't See 4% In 2010, Market Will Be Lower By Year End (Bets Terranova)

Sunday, November 1, 2009

David Rosenberg: GDP Won't See 4% In 2010, Market Will Be Lower By Year End (Bets Terranova)

David Rosenberg was on Fast Money by phone last Thursday. Here is what he had to say about the Q3 GDP number. Is 3.5% sustainable? He's been battling the bulls for a while.

He thinks Bernanke probably has 1937-1938 on his mind so no exit strategy any time soon...

"There's was just so much medication that the Government administered to get that 3.5%. When you really do your due diligence and look through the number and strip out all the stimulus from cash for clunkers to home buying credits to Government spending. Actually when you look at the economy organically outside all the stimulus it was a flat number."

Stance on market: "Very defensive right now. The stock market right now is de-facto, pricing in over 4% GDP growth in the next year, and I'm not really in the double dip camp, but neither do I think we see 4% GDP growth. Caution is the operative watch word." (Pimco's El-Erian sees 2% next year btw)

The Fast Money crew (Tim Seymour/Terranova) battle his views. Joe Terranova bets David Rosenberg that the market will be higher by year end. How about another Bolling v. Cramer bet?