The former Merrill Lynch Chief Economist's grand prophecy is here, and this time the warning shot is no small one.



David Rosenberg has recently started ringing the alarm again—he believes that next year the unemployment rate could jump to 6%. If a recession really hits, the Federal Reserve might be forced to wield the big hammer of rate cuts, with a single cut possibly reaching 125 basis points. Calculations suggest that interest rates could fall back to around 2.25%.

This is not just idle talk. This guy is the former Merrill Lynch North America Chief Economist, having experienced several economic cycles, so his judgment carries weight. Moreover, current economic data is indeed flashing red lights, and his warning should not be ignored.

If this prophecy really comes true, what impact will it have on us? The returns from traditional assets might be squeezed significantly, but on the flip side, could liquidity flow elsewhere? History often repeats itself, and certain asset classes might present new opportunities.

On the eve of an economic turning point, it’s always a moment where danger and opportunity dance together. How do you plan to adjust your positions? Will you hedge in advance or see this as a starting point for long-term planning?

Leave a comment and share your thoughts—do you think this prediction could come true by 2026?
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LiquidityLarryvip
· 01-05 13:50
Here comes the hype about interest rate cuts again. This guy said the same thing last year, and what was the result?
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UnluckyValidatorvip
· 01-05 02:54
Oh no, another 125 basis point rate cut. It sounds intense, but I feel like this guy is just spreading panic.
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gas_fee_therapistvip
· 01-05 02:53
Rosenberg is starting to call a downturn again. Is this really the case, or is he just creating panic? A 125 basis point drop directly, bringing the interest rate back down to 2.25, which feels a bit unreasonable.
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SchrodingersFOMOvip
· 01-05 02:51
Here comes another dump, dropping directly to 2.25% with a 125bp cut? Easy to say, but the real question is who dares to go all-in on traditional assets right now.
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HodlOrRegretvip
· 01-05 02:40
Another naysayer comes to join the fun; I would be surprised if I actually believed it.
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FUD_Whisperervip
· 01-05 02:32
Damn, is this another alarmist warning or real gold and silver alert... Anyway, I don't believe a word these big shots say.
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