David Rosenberg: beware widening credit spreads

The biggest risk to the ongoing bull market is widening credit spreads, says David Rosenberg of Gluskin Sheff.

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David Rosenberg,chief economist and strategist, Gluskin Sheff
(Image credit: © 2017 Bloomberg Finance LP)

Today's highly priced stockmarket is perching on much wobblier foundations than it seems, says David Rosenberg. Housebuilders, logistics stocks, and pharmaceuticals are all "well off their highs", he points out. "What has kept the market near record terrain are a mere six stocks Alphabet, Apple, Amazon, Netflix, Microsoft and Facebook Strip out these six flashy stocks, and the overall market has done practically nothing year-to-date." In the year to mid-July, those six accounted for nearly 80% of the gains made by the S&P 500. That level of dependence on one set of stocks has not been seen since the late 1990s, notes Rosenberg.

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Alice grew up in Stockholm and studied at the University of the Arts London, where she gained a first-class BA in Journalism. She has written for several publications in Stockholm and London, and joined MoneyWeek in 2017.