Bernstein, Rosenberg to leave Merrill

The New York-based firm announced to brokers yesterday that Richard Bernstein, Merrill's chief investment strategist, and David Rosenberg, chief North American economist, will be leaving the firm.

Two market gurus at Merrill Lynch & Co. Inc. are abandoning ship.
The New York-based firm announced to brokers yesterday that Richard Bernstein, Merrill’s chief investment strategist, and David Rosenberg, chief North American economist, will be leaving the firm.
Mr. Bernstein will be leaving April 15, followed by Mr. Rosenberg who plans to depart May 11.
Both men were widely followed by Merrill brokers, and their departure does not bode well for Bank of America’s ability to retain top talent, some brokers say. Charlotte, N.C.-based BofA acquired Merrill on Jan. 1.
“My first reaction is: should I be leaving?” said one Merrill broker in the Southeast who asked not to be identified.
Mr. Rosenberg will be joining Toronto-based wealth manager Gluskin Sheff and Associates Inc. as chief economist.
Mr. Bernstein’s plans are unknown. A memo sent to the troops said Mr. Bernstein might pursue opportunities on the buy-side or in teaching, or may write a book.
“I think it’s a shame” the two men are leaving, said a Merrill rep in the Northeast who asked not to be identified. “They were the top guys in the field.”
Both men have been bearish.
“Rosenberg is the one who’s kept me cautious,” said the Southeast rep.
Mr. Bernstein “had me [allocated heavily to] value in 2000,” this rep added. “That’s why I was down just 6% in 2000” when the market was off about 22%.
The Southeast broker quoted from memory a June 30, 1999, update from Mr. Bernstein, who then predicted one more leg up in the market, and told brokers to move out of growth and large caps, and into value and small caps.
That was exactly the right call.