David Rosenberg: nothing beats the Fed

Following the 1987 crash, the Fed cut rates rapidly, establish the so-called "Greenspan Put". Investors can expect no such repeat.

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

David Rosenberg, chief economist at Canadian wealth manager Gluskin Sheff, learned one critical lesson from the aftermath of the 1987 stock market crash "no matter how strong the economy is, nothing is more important than Fed policy and liquidity". In the wake of that particular crash, then-Federal Reserve boss Alan Greenspan cut rates rapidly, establishing a pattern which "came to be known as the Greenspan put'".

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