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Over 30 years of investing in individual stocks. Extensive business experience with small to mid-size companies, including as CEO. Many hundreds of blog posts on financial and economic matters since 2008. Focus on value with catalysts for upside price action. Background as a physician and... More
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  • Has The Best Contrarian Sell Signal For Stocks Now Arrived? 0 comments
    Apr 30, 2013 11:18 AM

    Nouriel Roubini, who was right into March 2008 and then has fought this business expansion and bull market in stocks, is now a stock bull, and not just tactically, but for 2 years from now. We can forgot that of course he's projecting a depression but, in line with ECRI's suggestion that this mild recession is about to give way to a 1927-9 type stock bubble, he says it's party time for what is a lifetime for stock market investors:

    The famously gloomy economist Nouriel Roubini has finally fingered an investment he likes. But his advice carries an expiration date.

    Roubini is predicting an uptick in stock prices over the next two years as the Federal Reserve continues its stimulus efforts. But buyer beware, Dr. Doom says, because a day of reckoning is lurking at the end of the two-year horizon.

    Roubini, an economics professor at New York University best known for predicting the U.S. housing crisis, thinks the Federal Reserve and other central banks around the world can and will prop up stocks and bonds for the next two years.

    The Fed, he said, is creating the same problems that led to the financial crisis in 2008 by keeping rates near zero. "They are creating massive fraud," Roubini said during a panel at the Milken Institute Global Conference in Beverly Hills, Calif. Monday.

    It's interesting that he gave this at the conference of a major crook, Mr. Milken. I met a very successful investor-businessman at a part in the Bush (43) years who had a close friend who went to work for Drexel in Milken's office in the '80s. His first day on the job, he saw how the office operated and quit. Day one.

    In any case, the theme that the Fed will prefer to prop stocks up over bonds in case of a recession or other crisis is inconsistent with history.

    Stocks are in a distribution phase. Roubini's message, highlighted by the media, helps allow the distribution to the public to occur.

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