Wednesday, October 30, 2013
Roubini’s Wrong is Always Right!
Nouriel Roubini, chairman of Roubini Global Economics, is an American economist and a Professor of Economics and International Business at New York University’s Stern School of Business. He is more commonly known as Dr. Doom due to his consistently pessimistic views and commentary on the economy.
But should anyone take him seriously?
On September 7, 2006, while addressing economists at the International Monetary Fund, Roubini warned of a one-time housing bust that would lead to a protracted recession. Though the markets did initially crash because of a housing bubble, the recession did not follow before the Standard & Poor 500 Index had rallied another 25% by October 2007. If investors had taken his word and taken a short position in the SPDR S&P 500 ETF (SPY), they would have incurred losses for a long period and possibly stopped out before realizing any gains. Read More: GLD, SPY