Roubini warns ‘Too Much, Too Soon, Too Fast’
The world renowned New York University Professor Nouriel Roubini, who accurately predicted the 2007 financial crisis, has sounded another timely warning “Markets have gone up too much, too soon, too fast.”
At the annual meeting of the International Monetary Fund in Istanbul last week, Roubini said “I see the risk of a correction, especially when the markets now realize that the recovery is not rapid and V-shaped, but more like U- shaped. That might be in the fourth quarter or the first quarter of next year.” He fears that surplus economies like China and Japan will not boost consumption enough to make up for the downturn in American consumer spending.
According to an article in Bloomberg today ‘The global equity rally has added about $20.1 trillion to the value of stocks worldwide since this year’s low on March 9. Governments have poured about $2 trillion of stimulus into the global economy while central banks have cut interest rates to close to zero in efforts to revive growth’.
Should we be listening to him this time?
On the other hand Steve Leuthold, one of the most successful investors in the world, has called for the S&P 500 to jump as high as 1350.
You buy the ticket, you take the ride.
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