Market Musings- where it’s headed in 12-18mths

Posted by David Rosenberg - Gluskin Sheff

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In this issue of Breakfast with Dave

– An interview with the Bear: Gregory Zuckerman at the Wall Street Journal just published a Q&A on the market and the macro outlook, featuring me alongside James Paulsen, at Wells Capital Management, whom I like a lot, but basically disagree with 99% of his views

– How will the U.S. mid-term election affect stocks, if at all? Tax rates on income and capital are going up next year, and gridlock will not give us strong leadership — hardly positives for the economic or market outlook

– What could happen that would turn you into a bear/bull?

– The U.S. equity market is still overvalued, according to the latest Shiller P/E ratio reading

– The roof collapses on U.S. housing: the NAHB housing market index caved in again in July

– A meat-grinder market: typically, what happens after a once-in-a-generation-type decline are powerful rebounds, but it never moves in a straight line

– Tough slog for employment: a survey by Accenture showed that businesses in the U.S. do not plan to restore their workforce to pre-recession levels anytime soon

Read the Summary HERE