Gluskin Sheff’s David Rosenberg writes this morning in a note to clients that equity investors will have “significant buying opportunities ahead” as stocks are starting to correct for prices that had risen way ahead of fundamentals. Stocks were pricing in 5% U.S. GDP growth in 2010, which couldn’t last, writes Rosenberg.
“It’s not just about the economic backdrop, it’s about what’s being priced in — that’s the lesson,” writes Rosenberg, referring to the 17 times forward P/E lately on projected S&P earnings.”
As for gold, Rosenberg says it’s become a crowded trade, but that it can still rise to $3,000 before the secular bull market in the precious metal ends.
Gold ended down $15.22 at $1171.78 per ounce.
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