joe: david rosenberg of luskin hef -- luskin chef -- of glusskin-scheff is still with us. vid: i think there's a lot of hope behind the comment about oil price. fewve found people -- people who have called that successfully. the bank already cut rates earlier in the year in light of what the oil price had done. i don't think many people thought they were going to cut prices. the story in canada isn't just about energy. it's about how the spread has affected other sectors as well, including manufacturing. and i think the big surprise in canada is, even with the canadian dollar declining as much as it has, really, it has only following this much before in a 12 month span in the 2009 global collapse -- only fallen this much before in a 12-month span in the 2009 collapse. gdp here today in canada has still contracted at a 1% annual has stillp in canada contracted at a 1% annual rate. this was the best that the bank of canada made earlier this year . the big surprise was cutting rates twice, and the second rate cut wasn't about what's happening with energy, it was about manufact

joe: david rosenberg of gluskin sheff is still with us. in toronto. do you agree with prime minister harper, that the oil shock is temporary and that the canadian economy will be fine? david: i think there's a lot of hope behind the comment about oil price. i have found very few people on the way up or down who have called this successfully, but, remember, the bank of canada already cut rates earlier in the year in light of what the oil price had done. i don't think many people thought they were going to cut rates twice, which they did recently, because the story in canada isn't just about energy. it is really about how the spread has affected other sectors as well, including manufacturing. and i think the big surprise in canada is that even with the canadian dollar declining as much as it has, really, it has only fallen this much before in a 12-month span in the 2009 global collapse, the big surprise in canada really is not so much what energy is doing. it is when you strip energy out, gdp in canada year to date has still contracted at a 1% annual ra

david rosenberg joins us on the cnbc newsline. good to hear from you. surprised to hear you're bearish. i thought you were bullish. >> i still think that the fundamental sector of a bull market is intact, but it's never a straight line and we had lots of periods in the '80s and '90s where the market took a pause, which is certainly it has done this year. we've been expecting a pullback for some time now you usually have a correction in a bull market every 12 to 18 months. to go through four years without seeing a pullback like this is what's bizarre. near-term pullback, and i think after labor day, i think by october at better price points we'll be back up to talking about the bull market straighting itself. >> you don't think this sell-off is necessarily over, but you view it as a correction in the context of a bull market? >> exactly right. the valuations going into the year were stretched. i never thought it was a bubble of select sectors. the reality is when you have pe multiples close to deviation above historical norm, when you get bad news like w

where does david rosenberg see opportunities here? he joins us with his perspective. >> are you bullish on equities, bearish at this juncture or all getting thrown out the window? >> i think i was last on a week ago and said we were expecting a pullback. we are seeing a very severe pullback. if the question is, is the bull market over, no. unless you think the u.s. is going to tip over in a recession. i don't think that's going to happen over the near or intermediate term. we have not had a meaningful correction in four years. this is a multiple-driven setback. 90% of the decline from the may highs happened since the chinese devaluation and all the adverse news that's come out since then. we are importing this from abroad. it's not like 2007. it's not 2001. it's not 1989. this is not a made in america pullback in the stock market. we've imported it. domestically there are still some areas that are opening up nice buying opportunities right now. 1998 you had an emerging market married to markets overvalued. how does this play out if we

david rosenberg, we all love david rosenberg, writes some wonderful pieces does great research.e the equipment of tightening 200 basis points. it is like sleeping and how much time it uses upment they have to normalize rates. is that a circular frame of reference to consider as a reason not to normalize. >> absolutely rick. what you have here is even today's claims number. that was the first time in 43 years that the claims have been under 300 for as long as they have been. when you have the fed that has no choice but to tighten. as far as the dollear argument, the emerging market and commodities. they are down i think it's happened and i think we're in a position of buy the rumor, sell the fact or in this case sell the rumor and buy the fact. i think things will improve once the fed starts to normalize. you know, might be an initial downtick i don't think equities are priced in the fed. i think there's allot of surprises how the market reacts once the fed move is finally done. >> you know many you and i probably agree, that the normalization process, of course going to potentia

and david rosenberg talking about currency wars and, jim, that's a big concern right now.n other words, everybody out there has try to take a place from janet and jim's book. they're all trying to put money into the system effectively printing money to get it into the system and try to, you know, basically increase liquidity. but in doing so, other economies and namely our own at risk? >> yeah, i think so. you're right that everybody's been doing some version of qe. whether it's been in europe, japan, china's had their version of it and of course we've had. and if you look at the study that came out last week, the other studies i think all they've accomplished was they've over done asset prices. they've pushed asset prices way too high. the economies and all these countries have not performed as all the people hoped that qe was going to save the economy. yeah, they give the default. what would have happened if we would have done it? the assistance nobody knows. but nobody expects the economies to be this week and soared as much as they have. so they've created a bit of a d

vonnie: david rosenberg pointed out it is important to stress what is not impacted by china, yuan, andancing. for you, how important is this? >> the u.s. is the most insulated country. we're in a recovery. it is sustainable, tepid, but clearly recovery. small-cap stocks or almost all domestic. small-cap investor, this is great. the set smart guys on this morning. the shanghai index doesn't look normal. david pearl, i am no idea what reversion to the mean means for chinese equities. >> you realize even where it is today, it is at 60 times earnings. the chinese market really is of oh relationship to any other normal stock market. we don't pay attention to that in and of itself. the wealth held in the stock market -- tom: where is it held within china, real estate and empty cities, right? >> as your chart shows, it was allowed to sell real estate and start to put it into the stock market. roller coaster ride. vonnie: can i make a point about what you said about the yuan and its place? we at a great story on bloomberg.com about how the fed is looking at the basket. the chinese yuan makes u

david rosenberg joining us this morning. >> shares of disney are hitting a rough patch but the dow componentleading the broader market as it kicks off its d 23 expo in california. up 14 % for the year. jane is here with a special guest. >> reporter: i'm here with john. i promise you we don't talk about emerging market currencies today. >> that's a different language for me. i don't quite understand it. >> reporter: let's talk about the language here. this is huge. >> it's bigger than ever. our fans are the best fans in the world, and this is a chance for us at disney to be able to give back and this expo this year is unbelievable. and we don't market to these fans. we show them things that they have never seen before, behind the scenes, introduce new stuff. lots of announcements. brand new stuff all three days. >> reporter: what's the behind the scenes? >> the first one is 3:00 this morning. i am going to give a presentation on the future films coming out from pixar and walt disney and we're announcing a bunch of new stuff. we have a lot of announcements there. >> >> reporter: can you give m