Markets react more violently than humans: Rosenberg
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Markets react more violently than humans: Rosenberg
Tags: Brexit, David Rosenberg
David Rosenberg says Britons’ surprise decision to leave the European Union will spell opportunity for investors, but it’s too soon to go on a spending spree.
“A buying opportunity is going to emerge, that much is for sure,” says Gluskin Sheff + Associate’s Chief Economist and Strategist. “I just think right now is a little bit early.”
Global markets continued to slide Monday, just days after the United Kingdom voted in favour of leaving the EU and despite British leaders’ efforts to calm investors’ nerves.
“The markets typically I think react a lot more violently than human beings do,” Rosenberg tells BNN. “The markets always price in the worst at first.”
He adds there remains a high degree of uncertainty about the political and financial fallout.
“Right now we’re still working through the kinks,” he says. “This is going to take place over a period of time.”
One of those “kinks” is whether Article 50, which is an untested procedure dictating how member states leave the union, will even be triggered.
“The longer that this goes on without Article 50 being invoked, the less of a chance Article 50 gets invoked and the greater chance that we get some sort of settlement without the U.K. actually exiting,” notes Rosenberg.
Amid that turmoil, the Bay Street veteran has this advice for investors: “The important thing right now is to be defensive [and] have some cash on hand to put to work.”
“A buying opportunity is going to emerge, that much is for sure,” says Gluskin Sheff + Associate’s Chief Economist and Strategist. “I just think right now is a little bit early.”
Global markets continued to slide Monday, just days after the United Kingdom voted in favour of leaving the EU and despite British leaders’ efforts to calm investors’ nerves.
“The markets typically I think react a lot more violently than human beings do,” Rosenberg tells BNN. “The markets always price in the worst at first.”
He adds there remains a high degree of uncertainty about the political and financial fallout.
“Right now we’re still working through the kinks,” he says. “This is going to take place over a period of time.”
One of those “kinks” is whether Article 50, which is an untested procedure dictating how member states leave the union, will even be triggered.
“The longer that this goes on without Article 50 being invoked, the less of a chance Article 50 gets invoked and the greater chance that we get some sort of settlement without the U.K. actually exiting,” notes Rosenberg.
Amid that turmoil, the Bay Street veteran has this advice for investors: “The important thing right now is to be defensive [and] have some cash on hand to put to work.”
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