Stocks are likely to continue their aggressive decline and shed another 20 percent as the world economy weakens, economist Nouriel Roubini told CNBC:
"There are some parts of the global economy that are now at the risk of a double-dip recession. From here on I see things getting worse. There is that risk because the problems on the macro level are first in the euro zone. Then in China there is evidence of economic slowdown...Japan is in trouble and US economic growth is going to slow down. There is also regulatory risk because we don't know how financial reform is going to occur. Apart from cash I would invest in short-term government bonds of countries that don't have a serious debt problem, countries like Germany and maybe Canada, a few other advanced economies that from a fiscal point of view are sounder than the weaker economies"
Related: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS)
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