Famed economist Nouriel Roubini of New York University says that while he doesn’t think global stock markets are in a bubble right now, irresponsible central bank policies has caused “some frothiness.”
"Across the board I don't see a bubble but I see certainly some frothiness that is not justified by the fundamentals because the economy is barely growing 2 percent, earnings growth is slowing down and P/E ratios are now above historical average," he recently told CNBC.
Assets like public and private equities, real estate, credit and government bonds are all expensive, he noted.
Roubini thinks the biggest risk is a Donald Trump presidency because it will lead to significant policy, political and geopolitical uncertainties.
However, others are even more pessimistic about the market's future direction.
Graham Summers, chief market strategist of Phoenix Capital Research, warns that the Fed has pushed the market to the brink of a 50 percent crash.
"The Fed might be able to put off hiking rates for a time, but eventually this will become a REAL issue. Particularly since CPI cleared 2% when Oil and most commodities were 40% off their highs," Summers wrote.
"Eventually the Fed will be forced to hike. And when it does, it will kick an already recessionary US economy into a severe contraction. Remember in 1937, the stock market HALVED after the Fed was forced to hike rates."
(Newsmax wire services contributed to this report).
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