28 June 2023
US house prices continue to decline, and economist David Rosenberg has issued a warning about the market. Citing charts showing a drop in median prices for new single-family homes and existing homes, Rosenberg questioned the Federal Reserve’s decision to raise interest rates further despite declining home prices, a key component of inflation. He also cautioned stock-market bulls, highlighting historical trends that indicate a recession and bear market following rate hikes. Rosenberg advised investors to play the market cautiously and ensure they have hedges and insurance in place.