The WSJ released an article last night on Nouriel Roubini, nicknamed Dr. Doom for his consistently bearish outlook that happened to accurately foresee the 2008 crisis. Apparently, he’s changed his tune:
“We’re a believer; we’re celebrating. We think the rally has legs,” said Gina Sanchez, Roubini’s director of equity and allocation strategy, and a contributor on CNBC.
She tells us that Roubini’s firm currently recommends being overweight equities, playing cyclical areas of the market such as technology. “Also we’d take some tilts into staples and telecom to collect yield. And we’d also be overweight ag and livestock. Generally we’d take advantage of the risk rally.” She topped off the forecast by adding that investors have months to make money.
The street’s response to this contrarian indicator has been more than negative: Doug Kass released a response titled; “Sell Everything! Even Roubini is Bullish!
Now the market rally in the past few months has created a lot of leery bulls; edging closer and closer to taking profits and getting a good nights sleep. While a run of these proportions without the balance of a correction or two will make any investor circumspect of their position, why is everyone searching for the one single indicator that the market will turn?
Solution: Do your homework, nobody can wrap their heads around every angle of the market.
via Dr. Doom Nouriel Roubini Is Turning Bullish On Stocks – MarketBeat – WSJ.