Rosenberg: Put Cash to Work in 2013

The often gloomy David Rosenberg of Gluskin Sheff + Associates says 2013 is a year for investors to put their cash to work.

Rosenberg still sees anemic growth for the United States and isn’t too optimistic on corporate profits, but he also thinks the Federal Reserve’s policies are making cash a bad place to be, according to Canada’s Globe and Mail. Rosenberg likes “corporate bonds and credit arbitrage plays over a large swath of U.S. equities,” G&M says, adding that Rosenberg advises being well diversified across broad group of assets.

But Rosenberg does like some areas of the market. “Mr. Rosenberg still favours dividend-paying stocks as a source of relatively secure income, including the Canadian banks and even large-cap U.S. tech companies, ‘where growth in dividends is second to none,'” Globe and Mail reports. “His diversified shopping list also includes emerging market equities and bonds, gold stocks, other precious metals and oil, in part because he believes China has successfully engineered a soft landing.” Rosenberg says he’s “much less worried about China than I was a year ago.”