David Rosenberg sees cracks in the longest bull market ever.
The Gluskin Sheff chief economist and strategist blames the record run's "artificial support," citing the boost stock and credit markets have been receiving from central banks around the world. But now, he predicts it could all come crumbling down as easy money policies fade.
"Keep in context how weird it is to have the longest bull market in equities in the context of the weakest economic expansion of all time, and how do you square that circle?" he asked Wednesday on CNBC's "Trading Nation." "It's because of the long arm of the central banks."
He predicted on the show in late July that widening credit spreads could tear apart the bull market. It's a scenario that's still high on his radar.
"The big risk is in the corporate bond market," he said. "We're going to have a severe tightening in financial conditions, and that's going to reverberate back into most risk assets including equities."
According to Rosenberg, it's an issue that could spill into quarterly corporate earnings reports as early as next year.
"We'll probably start to see earnings estimates come down and more earnings disappointments than we've seen over the course of the last several years," Rosenberg said.