Thursday, February 7, 2013

Roubini Is Now Optimistic on Stocks

Dr. Doom Nouriel Roubini told CNBC on Tuesday that the "easy money" policy of the Federal Reserve will continue for "as far as the eye can see" and that's going to continue to be good for the U.S. stock market. "When you look at the [mixed] economic data, there's a gap between the fact that the markets, rightly so, are buoyant," he told the network, "because middle of last year central banks had done another massive round of quantitative easing." "Some of the improvement in the markets is not because growth is picking up ... certainly easy money implies asset inflation," Roubini added.There are some positives in the U.S. this year. You have QE, you have housing, you have the shale gas, you have some recovery in jobs in manufacturing," he explained in the interview. "But between the [January] fiscal deal ... and probably 'the sequester,' or something similar, we might have a $300 billion fiscal drag this year.""[The unemployment rate] is not going to fall to 6.5%, which is the trigger for the Fed stopping zero policy rates," Roubini said. - in CNBC
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