'Already begun': Wall Street investor warns of sharp economic downturn

One of the oldest investors on Wall Street claims that the US economy is on the verge of recession.

Фото: Depositphotos

David Rosenberg of Gluskin Sheff warns that incomes are changing, and evidence suggests that the economy is on the verge of recession.

“Maybe there is no recession. But it certainly speaks to the significant slowdown in the U.S. economy today,” he said Thursday on CNBC's "Futures Now."

Even though the Dow, S&P 500 and Nasdaq all announced their worst week since May, they are still trading around all-time highs.

But reliable levels do not reassure Rosenberg.

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“The stock market peaked in October 2007 and began to decline two months later,” he said. “This is one of those rare times when earnings are down, earnings estimates are down, and the stock market just rolls and rolls because it's a liquidity impetus and a central bank-driven market.”

Rosenberg, who warned back in January that the economy was approaching a recession, wants investors and the Federal Reserve to be more serious about recession risks. He believes that the "sluggish" profit season in the second quarter, which is just a week, could eventually become a key catalyst.

As for the exact timing of the recession, Rosenberg has a more detailed answer than in January.

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“It’s hard to pinpoint the time,” he said. “My guess is that it may have already started.”

Despite the delay, Rosenberg is confident that troubles are in sight, even if the Federal Reserve satisfies the consensus about a quarter-point reduction in interest rates at the end of this month and will help raise the historical growth of the stock market to new highs.

“A couple of years ago I started to worry. Now I’m banging my fist on the table,” Rosenberg said.

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