The U.S. stock market has the potential for further declines, warns David Rosenberg, formerly chief economist at Bank of America Merrill Lynch (now BofA Securities. Talking to MarketWatch, he said he doesn't see any signals indicating a bottom has been reached. In his view, the S&P 500 could lose 30% this year and reach 2,900 points.

Despite Joe Biden's recent remarks about the unlikelihood of a recession in the United States, Rosenberg notes that it is already starting. In such cases, the market will bottom out in six to seven months when the Fed lowers rates. At the same time, in his opinion, it might start to do so this year.

The expert is inclined to believe that the Fed will act exactly as he says. At the press conference after last Wednesday's meeting, and during his speech yesterday, Regulator Chief Jerome Powell displayed a less hawkish tone about rates, saying he expected inflation to fall further.

What is relevant now, in Rosenberg's view, is a strategy of picking stocks called "Dow dogs." In addition to risk assets, he recommends including gold and bonds in the portfolio.