Stocks could drop 40%, and this is how to get ready for it, says Nouriel Roubin

[libertybele]

President Uncle Joe Biden???

Stocks could drop 40%, and this is how to get ready for it, says Nouriel Roubin

The Democratic field is poor, but Trump is dead’

‘I expect global equities to tank by 30% to 40% this year. My advice is: Put your money into cash and safe government bonds.’

That’s economist Nouriel Roubini sharing his gloomy outlook on the market in an interview with Germany’s Der Spiegel last week.

“You have to hedge your money against a crash,” Roubini continued, adding that his motto is “Better safe than sorry!”

His latest bearish take — which lives up to his “Dr. Doom” nickname — comes amid a market that saw a February peak-to-trough drop in the S&P SPX, -1.70% of nearly 13%. For the whole month, the index was down more than 8%............

..............Markets aside, Roubini said he believes there will be huge political ramifications, especially if/when the coronavirus blows up in the United States..............

..............Does that mean a “perfect scare-scenario” for Trump?

“Not at all. He will lose the election, that’s for sure,” Roubini said. “This has always the case in history. Ford lost to Carter after the 1973 oil shock, Carter lost to Reagan due to the second oil crisis in 1979, and Bush lost to Clinton after the Kuwait invasion. The Democratic field is poor, but Trump is dead.”

https://www.marketwatch.com/story/stocks-could-drop-40-and-this-is-how-to-get-ready-for-it-says-nouriel-roubini-2020-03-01?itm_source=parsely-api&mod=mw_more_headlines

[Sighlass]

Not much a Trump fanboy... but this guy is a real work of art... worked for both Clinton and Obama... and has made some major bad predictions in the past.

https://en.wikipedia.org/wiki/Nouriel_Roubini

https://www.cbsnews.com/news/nouriel-roubini-misses-another-prediction/

[catfish1957]

President Uncle Joe Biden???

Stocks could drop 40%, and this is how to get ready for it, says Nouriel Roubin

The Democratic field is poor, but Trump is dead’

In this era of electronic trading, and nimble systems?...  Don't be so sure.  If COV-19 ends up having less than the hysteria effect?, then this can temper down, and be managable.  Oil war?  That game of chicken could go either way.  I wouldn't count Trump out yet.

‘I expect global equities to tank by 30% to 40% this year. My advice is: Put your money into cash and safe government bonds.’

Bonds?  Either this guy an idiot, or more than likely misquoted?  Does he not understand how the inversion of bond cost/interest rate works?  You can invest in a bond at 1%, and if the prevailing rates go up to 2%, you potentially have lost half your investment.  OTOH, sitting on a boat load of cash after a crash, ready for investment bargains, is always a good idea.

Roubani has been doom and gloom for 20 years now and many laugh at his ass.  I think he is waiting for the broken clock twice a day scenario..   That's all he's got left in his quill. 

[mountaineer]

Ian Miles Cheong  @stillgray
Cheering about economy tanking because billionaires had billions of dollars wiped off their value (not explicitly true if they didn’t panic sell their stocks) is so incredibly tunnelvisioned. The only people who suffer are the employees they pay.
6:17 PM · Mar 9, 2020

[Free Vulcan]

I think 40% is a little overblown.

[libertybele]

I think 40% is a little overblown.

The market has never dealt with a pandemic and now a ME oil squabble as well. IMHO, I don' think we can rely on market charts and trends of the past.

[Hoodat]

Stocks could drop 40%,

That tends to happen when stocks are overpriced by 40%.

[thackney]

The market has never dealt with a pandemic and now a ME oil squabble as well. IMHO, I don' think we can rely on market charts and trends of the past.

The market (stock exchanges) have survived quite a few pandemics.

https://www.mphonline.org/worst-pandemics-in-history/

History Of The New York Stock Exchange
https://www.fxcm.com/uk/insights/new-york-stock-exchange-nyse/
The NYSE was founded 17 May 1792

https://www.londonstockexchange.com/products-and-services/rns/history/history.htm
For over 300 years, the London Stock Exchange has produced detailed market information for companies and investors.