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☆ Who is Nouriel Roubini, Wall Street's 'Dr. Doom' economist who has warned of catastrophe for 2 decades?
▼ + stars: | 2023-04-09 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +6 min

Nouriel Roubini, the economist known as "Dr. Doom", has been warning of disaster for two decades. He rose to prominence after being among the commentators to call the 2008 financial crisis. When he spoke of an impending housing crash at the International Monetary Fund that year, the audience chuckled, the New York Times reported. Nouriel Roubini economics professor at New York University attends 48th edition of Economic Forum of Cernobbio on September 02, 2022 in Cernobbio, Italy. "Even a stopped clock is right twice a day," Anirvan Banerji, a critic of Roubini's told the New York Times in 2008.

☆ 'Dr. Doom' Nouriel Roubini says Fed rate hikes are a 'megathreat' to the US economy
▼ + stars: | 2023-03-31 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

The "Dr. Doom" economist says interest rate hikes and a mountain of debt will lead the US into a recession. In an interview with Bloomberg, Roubini breaks down the "trilemma" markets are facing right now. The central bank's efforts in the name of fighting inflation are an economic "megathreat," Roubini told Bloomberg TV on Friday. "So, we have the worst of the [1980s] in terms of negative supply shock, reduce growth that cause inflation," Roubini said. [We're] having to raise interest rates because inflation is too high.

☆ The economy is headed into a 'Bermuda Triangle' of risk that will bring on a crisis to rival 2008, 'Dr. Doom' economist Nouriel Roubini says
▼ + stars: | 2023-03-23 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The economy is headed into a "Bermuda Triangle" of risk, economist Nouriel Roubini warned. He sounded the alarm for a stagflationary debt crisis and a severe recession to hit the US. Second, high interest rates means firms are battling higher costs of borrowing and waning liquidity, which weighs on asset prices. Finally, high interest rates are pressuring the mountain of debt, both private and public, that was amassed during the years of low rates, Roubini said. And when many of them are having these problems, then you have a systemic household debt crisis like [2008]," he warned.

☆ The CIO of Morningstar Wealth's Americas unit explains why investors focused on the next recession are missing the point — and shares the market areas to buy now for profits in any economy
▼ + stars: | 2023-03-13 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

Marta Norton believes that investors hyper-focused on the next recession are missing the point. A glance at the current US economy certainly doesn't paint a very rosy picture for investors. "Very long term return prospects across equities and fixed income are better today than they were a year ago, but markets still aren't priced to really attractive levels," she added. Globally, Norton is also bullish on the communication services due to the sector's attractive valuations and diversification benefits, since some companies have both value and growth characteristics. Norton is also overweight healthcare and consumer staples, two defensive sectors that are more resilient to market volatility and earnings declines.

☆ Mohamed El-Erian says U.S. may be stuck with sluggish growth and high inflation
▼ + stars: | 2023-03-13 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

There's a risk the economy can be stuck in a period of stagflation — sluggish growth and high inflation —on the heels of Silicon Valley Bank's collapse, economist Mohamed El-Erian said Monday. The central bank has been hiking rates for the past year in an effort to tame inflation. El-Erian, chief economic advisor at Allianz, said the Fed should continue on its path and increase rates by another 25 basis points. El-Erian believes it's possible the Fed may, in fact, hold off, but said there are no more perfect policy reactions available for the central bank. "When you hit the brakes you risk both economic and financial accidents and we just lived through a financial accident."

☆ A 'perfect storm' of recession, debt, and out-of-control inflation is coming for markets this year, 'Dr. Doom' Nouriel Roubini says
▼ + stars: | 2023-03-02 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

A recession, debt crisis, and stagflation trifecta is going to strike the US economy this year, according to Nouriel Roubini. Roubini, known for his doomsayer predictions on Wall Street, has warned for months that another financial crisis will hit markets. Roubini, one of the first economists to call the 2008 recession, has been warning for months of a stagflationary debt crisis, which combines the worst aspects of 70s-style stagflation and the '08 debt crisis. The result would be a steep recession anyway, followed by more debt and inflation problems. "Now we're facing the perfect storm: inflation, stagflation, recession, and a potential debt crisis," Roubini warned.

March 1 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. How Asian markets trade on the second day of the month on Thursday may come down to which of these two forces retains the most momentum. chartSpiraling bond yields, rates and inflation expectations aren't confined to the U.S. - euro zone PMIs also highlighted stagflationary pressures, while euro zone inflation expectations are the highest in over a decade and, in a rare occurrence, pushing above U.S. equivalents. Can Asian markets withstand these pressures on Thursday and take their cue again from China's economic renaissance? There are no top-tier Asian economic data releases on tap - South Korean retail sales, Australian building approvals and Japanese consumer confidence - leaving flash February euro zone inflation as perhaps the biggest market-mover of the day.

☆ 'Dr. Doom' Nouriel Roubini says stocks and bonds will suffer for years to come as inflation hovers close to 6%
▼ + stars: | 2023-02-24 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Stocks and bonds are in for more severe losses for years to come, according to Nouriel Roubini. Roubini, who was among commentators who accurately predicted the 2008 crisis, warned investors that inflation could hover close to 6% despite the Fed's scramble to bring down high prices. Over the last year, central bankers have raised interest rates 450 basis-points to tame high inflation, a move that's weighed heavily on stock and bonds. That's because central bankers will be torn between raising interest rates to fight inflation, and lowering interest rates to alleviate debt burdens, he warned. Roubini urged investors to move away from "traditional" investments like bonds and equities, and to instead invest in inflation hedges, including short-term bonds, inflation indexed bonds, commodities, and precious metals such as gold.

☆ Barclays names 6 'cheap, under-owned' UK stocks to buy, saying 2 offer more than 50% upside
▼ + stars: | 2023-01-30 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Barclays Capital has named six London-listed stocks to buy as it believes the U.K. stock market is currently "cheap" and "under-owned." Two of the investment bank's picks — Drax Group and IG Holdings — are also predicted to rise by more than 50% in the next 12 months, thanks to several policy tailwinds. Drax Group Drax, which runs one of the last remaining biomass and coal-fueled power stations in the U.K., is one of Barclays' preferred stocks. IG Group Shares of stockbroker IG Group could rise by 55% over the next year to £12 a share, Barclays analysts have said. The investment bank believes a high-interest rate environment allows the stockbroker to earn interest on a customer's deposit, further increasing its profit margins.

☆ EVERCORE: Buy these 20 oversold value stocks that are due for a turnaround that will see them outperform in 2023 and beyond
▼ + stars: | 2023-01-27 | by ( Marley Jay | ) www.businessinsider.com time to read: +2 min

Evercore ISI says healthcare, staples, and energy stocks are set up for outperformance in 2023. Strategist Julian Emanuel says investors should make sure they're allocated to value stocks. Emanuel said one way investors can maximize their chances of success is to buy "misperceived" value stocks that have underperformed recently even though analysts' earnings forecasts for those companies are rising. He recommended concentrating on energy, healthcare, and consumer staples companies, as oil supply tensions and the resurgence of China's economy should boost energy prices, while healthcare and staples stocks do well in stagflationary or recessionary periods. The following 20 stocks are ranked based on their performance relative to the S&P 500 from those October 13 lows through January 13.

☆ The stock market is in the green so far this year, but don't buy into the bullish hype just yet. A UBS investing chief explains why the rally could be a 'head fake' — and why it's still critical for i
▼ + stars: | 2023-01-21 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +5 min

UBS's Mark Haefele says there's a strong possibility the January market rally is a "head fake." But the rally has sputtered to a halt after US stocks sold off this week to erase half the gains they've made in 2023. "But it remains possible that the rally is a 'head fake,' and that economic data will ultimately disappoint." This may be due in part to a strong labor market keeping wage growth robust. And despite energy's astonishing rally last year, Haefele still believes that there's still room to go for the sector.

☆ 'Dr Doom' Nouriel Roubini says 'literally 90% of crypto is a scam' and Sam Bankman-Fried and FTX are not outliers in the market
▼ + stars: | 2023-01-18 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

"Dr. Doom" economist Nouriel Roubini told Yahoo Finance Live that 90% of crypto is a scam. He described the stricken industry as a "total real-bubble Ponzi scheme that is going bust." The former NYU professor called most crypto execs "crooks" and said FTX founder Sam Bankman-Fried is not an outlier. "A total real-bubble Ponzi scheme that is going bust." FTX filed for bankruptcy in November after his crypto exchange lost at least $8 billion of customer funds.

☆ 'Dr. Doom' Nouriel Roubini says the Fed will wimp out on its inflation fight and gold is the best protection as volatility batters the economy
▼ + stars: | 2023-01-13 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The Fed will wimp out on its inflation fight, according to "Dr. Doom" economist Nouriel Roubini. Roubini said gold is the best bet for investors as inflation, high debt, and extreme volatility are set to batter the economy. "There is so much debt in the system that an attempt to reduce inflation not only causes an economic crash, it causes also a financial crisis," Roubini said. However, that still won't save the economy from a recession: Failing to bring inflation back to target levels could cause a de-anchoring of inflation expectations, sparking a stagflationary debt crisis, Roubini warned. That could slam the economy with high unemployment, high inflation, and a severe downturn, causing stocks to tank 30%.

☆ 2 brothers quit their Wall Street jobs to build ETFs that help everyday investors reach their money goals. They explain how a Ray Dalio-inspired strategy helped their funds outperform the S&P 500 in 2
▼ + stars: | 2023-01-12 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +10 min

Brothers Taylor and Brett Sohns have worked on Wall Street for most of their careers. These parameters can be found in what's called the "prospectus," which is a document that outlines the ETF's investment strategy and potential risk. Consider the process of buying cereal, explained Taylor: "Say you want Lucky Charms. The S&P 500 is down about 18% year-to-date, so we're outperforming that by about 5%," explained Taylor. While you may not do exceptionally well, you'll also never do exceptionally bad, explained Taylor: "In a rip-roaring up market, his product and our product will underperform.

☆ Evercore ISI's top picks for 2023 include a tech comeback story and a car racing play
▼ + stars: | 2023-01-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Finding opportunities amid the market volatility is "mission critical," and there are several to be had this year, according to Evercore ISI. The Wall Street firm is predicting an economic and earnings recession, catalyzing a "cathartic" volatility spike in 2023. "Alpha opportunities are surfacing in 2022's wreckage from inflation's breakout resulting in record tightening, catalyzing a stock/bond correlated decline. With that in mind, Evercore came up with its top stock picks for 2023. The streaming company should enjoy a comeback this year, after losing 51% in 2022, according to analyst Mark Mahaney.

☆ Markets are wrong to think things will return to normal and should brace for an era of tumult, debt, and high interest rates, former Treasury Secretary Larry Summers says
▼ + stars: | 2023-01-06 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Markets are wrong to think things will return to normal this year, former Treasury Secretary Larry Summers said. He warned investors to brace for a new period of debt, tumult, and volatile interest rates. Central bankers hiked interest rates an aggressive 425-basis-points to tackle sky-high inflation, driving stocks to a 20% loss for their worst performance since the 2008 recession. Markets may also be wrong to think a return-to-normal is possible after this inflationary shock, Summers said, as the era of ultra-low interest rates and steady economic growth is now in the past. Summers believed the new era would also be defined by higher debt levels due to higher national spending, as well as higher investment demand.

☆ Here's why Wall Street is warning the Fed blew it on inflation and it won't save the stock market from crashing
▼ + stars: | 2022-12-24 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +7 min

The Fed blew it on inflation stocks are going to have to suffer as a result. The central bank has no choice now but to keep hiking until inflation is down, experts have said. Here are five top voices in markets warning investors not to pin their hopes on a Fed put to save stocks. El-Erian has been a loud critic of the Fed's response to inflation this year, slamming central bankers for saying inflation was "transitory" in 2021. That's the cost of the Fed being late to the game, and the central bank can't back away from its monetary tightening now, El-Erian warned.

☆ A top 1% performing fund manager explains why history proves the S&P 500 will fall another 30% in the next 3-to-9 months — and shares 11 compelling stocks to buy in 2023 that will power through a rece
▼ + stars: | 2022-12-21 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

He foresees the S&P 500 falling another 30% and bottoming within the next three to nine months. Abate shared 11 compelling stocks to buy to mitigate looming recessionary risks. But with the looming threat of a recession, Abate believes that the days of big contrarian trade ideas are now behind us. Especially "idiosyncratic stocks that have kind of already felt the pain of a downturn, so even if a recession happens, their backlogs can get them through recessionary conditions." Two biotechnology names Abate noted as standout idiosyncratic ideas are Biogen (BIIB) and Gilead (GILD).

☆ Australia's sovereign wealth fund buys gold, commodities as shadow of 1970s looms
▼ + stars: | 2022-12-19 | by ( Lewis Jackson | ) www.reuters.com time to read: +2 min

SYDNEY, Dec 19 (Reuters) - Australia's A$200 billion ($134.28 billion) sovereign wealth fund is increasing exposure to gold, commodities, private equity and infrastructure as it warns the future will echo the low-growth, high-inflation era of the 1970s. Investors large and small are scrambling to adjust portfolios and philosophies undermined by the simultaneous cratering of equity and bond markets. Investors now faced a world corrosive to asset prices: more war, the risk of capital controls and confiscations, bigger government, and the spectre of higher inflation. In response the Future Fund is implementing six broad sets of changes, including more focus on dynamic asset allocation and liquidity. Traditional approaches have delivered strongly, but it is doubtful they are fit for purpose in the future," it said.

☆ ECB delivers fourth straight increase but slows pace
▼ + stars: | 2022-12-15 | by ( Reuters Staff | ) www.reuters.com time to read: +5 min

COMMENTS:FLORIAN HENSE, SENIOR ECONOMIST, UNION INVESTMENT, FRANKFURT”This is probably the most hawkish 50 basis points they could come up with. Everything I read in the statement press release sounds hawkish and maybe even “very hawkish” to me. However, core inflation momentum remains firm and the labour market tight.”MARCHEL ALEXANDROVICH, EUROPEAN ECONOMIST, SALTMARSH ECONOMICS, LONDON:“It (the ECB statement) is very hawkish. “The 50 bps hike was expected and the pace of QT (quantitative tightening) was in the ballpark of what folks were expecting. “Even though the ECB is now going at it a bit slower, that doesn’t necessarily mean that they’re also going to target a lower terminal rate.

☆ Brace for a stagflationary crisis that the Fed and other policymakers will be powerless to prevent, Nouriel Roubini warns
▼ + stars: | 2022-12-06 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The 'Dr Doom' economist warned that 'the mother of all stagflationary debt crises' is coming. "The mother of all stagflationary debt crises can be postponed, not avoided," Roubini wrote in a Project Syndicate op-ed published Friday. But it's no longer possible for the Fed and other policymakers to support those debt-laden entities by slashing interest rates, as inflation remains close to multidecade highs in most developed markets. Read more: Brace for the Fed to steer the US into recession, Nouriel Roubini has warned. Here's where 'Dr Doom', Sam Zell, and 3 other top experts think the economy will suffer.

☆ 'Big Short' investor Michael Burry sounds the recession alarm, warning the US economy faces a multiyear downturn
▼ + stars: | 2022-11-30 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Michael Burry has predicted the US economy will suffer a multiyear recession. The 'Big Short' investor sees no way for authorities to end the downturn early. Burry has warned consumers will virtually exhaust their savings soon, tanking the economy. The investor of "The Big Short" fame seems to be suggesting the Federal Reserve and US government have few good options to shore up growth. Burry shot to fame after his billion-dollar bet against the mid-2000s housing bubble was immortalized in the book and the movie "The Big Short."

☆ Stocks week ahead: How the midterms could affect Wall Street
▼ + stars: | 2022-11-06 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +8 min

Investors are more than happy when politicians bicker but don’t actually enact any new laws that may hurt corporate profits. If Republicans get the House, tax hikes are dead in the water,” said David Wagner, a portfolio manager with Aptus Capital Advisors. That’s because there are some areas of consensus for the White House and Republican lawmakers. Congress and the White House may spend more time bickering than trying to pass legislation. Ameriprise chief market strategist Anthony Saglimbene said on a conference call last week about the midterms that stocks have historically gone up after elections, no matter which party controls the White House and Congress.

☆ Swiss National Bank loses nearly $143 billion in first nine months
▼ + stars: | 2022-10-31 | by ( John Revill | ) www.reuters.com time to read: +3 min

Gold holdings lost 1.1 billion francs in value. "The problem is the stagflationary environment where equities lose, bonds lose, gold loses and the Swiss franc becomes stronger. The loss could, however, mean that the central bank halts payouts to the Swiss federal and cantonal governments next year. Continued massive losses could wipe out the SNB's equity, which stood at 204 billion francs at the end of 2021. It helps the credibility of a central bank if it is well capitalized."

☆ The billionaire founder of Interactive Brokers warns that stocks have another 20% downside as investors underestimate the impact a stagnant economy will have on earnings
▼ + stars: | 2022-10-22 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Interactive Brokers founder Thomas Peterffy is bearish on stocks over the next few quarters. Thomas Peterffy, the billionaire founder of Interactive Brokers, doesn't see the Federal Reserve succeeding in its goal to bring inflation back down to its long-term target of 2%. That doesn't mean, however, that the Federal Reserve will remain committed to reining in inflation, like they've pledged. Investors "are not accounting for the earnings hit that we will get from reduced demand," Peterffy told Insider on Friday. Rallies have been continually stymied by realizations that the Fed is going to have to raise interest rates higher than investors had originally expected.

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