- Stocks are being fueled by “complacency, greed, and momentum,” not fundamentals, David Rosenberg said.
- The economist highlighted concerns about lackluster earnings support and negative economic indicators.
- The VIX was under 13 on Tuesday, continuing its longest streak below that threshold since 2018.
The stock market is at odds with what is going on in the economy, top economist David Rosenberg says.
The latest market frenzy has shades of July 2007, when stocks were caught in a swift decline just three months later, and Rosenberg notes that the mania fueling gains is “beyond the extreme.”
In a note on Tuesday, he argued that there has been a lack of solid economic fundamentals to sustain the big rally since the end of last year, describing the market as driven by “complacency, greed, and momentum.”
Yuheng Zhan | Yahoo Finance