With the global economy grinding to a halt because of the COVID-19 pandemic, economic conditions can’t get much worse than they already are, according to famed economist David Rosenberg, chief economic strategist at Rosenberg Research and Associates.
However, Rosenberg added that investors shouldn’t expect to see a significant recovery anytime soon. He said that they should position their long-term portfolio to reflect an environment of long-term stagflation.
“We’re going to be into a prolonged period of very soft economic growth. There is no rebound that is taking us back to where the economy was,” he said. “The new normal is going to be very constrained.”