Cardinal Capital Investment Update – May 2022

IS A RECESSION ON THE HORIZON? – David Rosenberg says  if there’s one thing we’ve learned from history it’s that people don’t learn from history. One of Wall Street’s most notorious bears believes Canada is on the verge of a recession as central banks have their hands full with rising inflation.

“The trick (for central banks) is going to be to quash this inflation without creating an outright recession. That is, by far, the biggest risk right now,” says David Rosenberg, president and chief strategist at Rosenberg Research & Associates, a Toronto-based economic consulting company.

There have been 14 hiking cycles by the Federal Reserve in the U.S. and 11 of them ended in a recession, he told more than 450 people at the CFA Society Winnipeg’s annual forecast dinner at the RBC Convention Centre on April 19th. Recessions typically follow the kind of fuel and  food squeeze that the world is currently experiencing, he says.

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