Tags: Roubini | Bullish | Sell | stocks

Famed Bear 'Dr. Doom' Roubini Turns Bullish — Time To Sell!

Wednesday, 08 February 2012 08:07 AM

Economist Nouriel Roubini believes recent actions by the Federal Reserve and European Central Bank will continue to make equities an attractive investment during the next few months, The Wall Street Journal reports.

Contrarian investors take note: Given that Roubini (also known as “Dr. Doom”) is one of the biggest investing bears on the planet, it’s probably time to sell stocks.

“We’re a believer; we’re celebrating. We think the rally has legs,” Gina Sanchez, Roubini’s director of equity and allocation strategy, told CNBC.

According to Sanchez, 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," Sanchez says. "And we’d also be overweight ag and livestock.”

Editor’s Note: Join the 3.5% of Americans who are truly wealthy and financially secure.

“Generally we’d take advantage of the risk rally.”

Sanchez topped off this forecast by saying that investors have months to make money.

But the Wall Street Journal reported that Roubini tweets he doesn’t see the rally lasting more than a few months. “Indeed in H2 2012 the rally will fizzle,” he said on Twitter, the Journal reported.

However, Roubini also reportedly thinks more pain will accompany the equity markets in the second half of 2012, and sees the S&P 500 ending the year at 1300, which would represent a 3.6 percent decline from current levels.

The Business Insider reports that hedge fund manager Doug Kass, founder and president of Seabreeze Partners Management, sent out an email blast titled “Sell Everything” because Roubini is bullish.

© 2020 Newsmax Finance. All rights reserved.

1Like our page
Wednesday, 08 February 2012 08:07 AM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved