David Rosenberg on What to Do When You're Wrong

Barry Ritholtz is a Bloomberg View columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He blogs at the Big Picture and is the author of “Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.”
Read More.
a | A

This week on our Masters in Business interview, we speak with David Rosenberg,  chief economist and strategist at Gluskin Sheff. 

Rosenberg, who gained a following as Merrill Lynch's chief economist for North America, describes how his role as an economist and strategist shifted once he moved from the sell side (as brokers are known) to the buy side (asset managers and mutual funds).  It required a radical reconsideration of how he thought about risk and what one should do when you discover you are wrong. Having a "degree of conviction" as well as a "Plan B (and C and D and . . . )" are keys to advising portfolio managers and others who run money professionally, he said. It was a stark contrast from merely opining on markets and the economy with little or no consequences for being wrong. During the podcast, we were joined by Bloomberg economist Richard Yamarone.

The full podcast is available on iTunesSoundCloud and on Bloomberg.  Earlier podcasts can be found on iTunes and at BloombergView.com.

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

To contact the author of this story:
Barry L Ritholtz at britholtz3@bloomberg.net

To contact the editor responsible for this story:
James Greiff at jgreiff@bloomberg.net