Public company CEOs are economic and financial market cheerleaders. Of course, they are; just ask them. They have taken an oath that their primary duty is “rewarding shareholders,” i.e., getting share prices higher. Equity-linked incentives also make up the bulk of their compensation. The same is true of central bankers and so-called ‘investment experts’ because their primary role is to help boost confidence, borrowing, spending and security buying at every price. In this way, most financial experts are quite literally paid ‘not to see’ loss prospects. And yet, after confidence and prices have been boosted to the top end of historic norms, reality always intervenes with a gut punch that the masses never see coming.
This is why it’s imperative that individuals and bona fide risk managers are skeptics that do not blindly follow talking heads but rather do their own due diligence and assessments.
David Rosenberg, Rosenberg Research, joins ‘Closing Bell’ to warn that today’s retail sales data could be a warning sign for stocks. Here is a direct video link.
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