Roubini Sees Global Equities Dropping 10% If Economy Softens
- Correction likely if economy weakens, inflation is elevated
- ‘Dr. Doom’ now less pessimistic than end of last year
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Economist Nouriel Roubini, who correctly predicted the 2008 financial crisis, said global stocks could drop as much as 10% in the second half if the economy surprises negatively.
A slump of that magnitude would be an abrupt reversal for markets, which soared in the first half of the year amid hopes interest rates will peak soon and optimism that the global economy will hold up better than expected. Tech stocks have lead the advance in equities, driven particularly by enthusiasm in the US over developments in artificial intelligence.