Stocks aren’t in bubble territory, but they could be headed for a big crash.
So says Nouriel Roubini, economics professor at New York University, who is known for his pessimistic outlooks. According to CNBC, he made the comments at a private dinner event in Las Vegas, when he said a “huge rally in risk assets” over the next two years could be setting markets up for a major selloff.
Roubini said there is a “huge gap between sentiment on Wall Street and the main street,” and that the U.S. economy itself remains weak. Roubini appears to be in town (Vegas) for the SkyBridge Alternative Conference, which runs from May 7 to 10. Other big names headlining the meeting include John Paulson, who has been seen in the headlines recently for the big hits his $500 million Gold Fund has been taking.
Anyway, the SALT conference bills itself as “committed to facilitating balanced discussions and debates on macro-economic trends, geopolitical events and alternative investment opportunities within the context of a dynamic global economy.” Alongside a big representation from the hedge-fund world, speakers include actor Al Pacino, director Oliver Stone, ex-Greek prime minister George Papandreou and former French president Nicolas Sarkozy.