Roubini: USA the Less Dirty Shirt

Jan 20, 2012
J. Webster
Comments Off on Roubini: USA the Less Dirty Shirt

Nouriel Roubini, otherwise known as Dr. Doom, talks about the outlook for the stock market in 2012. Surprisingly, Mr. Roubini is not as gloom and doomy as he usually is. Perhaps he woke up on the right side of the bed. He talks more about dirty laundry than anything else. And yes, he still see volatility in the markets:

“Last year was a year of risk, volatility, uncertainty and surprises and the question is, ‘Are they going to happen again?’” Roubini said. “If you think about all these tail risks about the global economy, the reality is many of them are not temporary. Many of them are not transitory and many of them are not random events,” he said. “They’re going to be sources of volatility.”

He said he’d buy the U.S. dollar and Treasuries since these assets tend to perform better during periods of risk aversion. While the U.S. has a “large fiscal deficit,” it’s “the less dirty shirt in a very dirty laundry bag,” Roubini said. Last year, Treasuries had the biggest annual return since the depths of the financial crisis in 2008 as Europe’s debt turmoil spurred investor demand for refuge. (Bloomberg)

Related Posts Plugin for WordPress, Blogger...

Comments are closed.