Defensive Growth In a note to investors on Friday, he wrote “I refuse to hyperventilate over inflation.” He believes the other side of surging growth is a plateau.
“That’s the story for the second half of the year... The bond market is sniffing that out right now,” Rosenberg said. “My forecast is slower growth, inflation peaking out and rolling over and a bull flattening in the yield curve.”
It’s an outlook that would spell trouble for the reopening trade. Rosenberg predicts consumer cyclicals, a major part of it, will fall out of favor later this year.
“Growth should reclaim leadership over value in the stock market,” he said. “You want to be more in defensive growth and in areas of the market that are going to benefit from a lower bond yield.”