Roubini Warns Stocks Risk 10% Drop as Stagflation Worries Mount

Markets have become ‘overly data dependent,’ El-Erian says
Economists meeting in Cernobbio ponder panoply of threats

Nouriel Roubini, chairman and CEO at Roubini Macro Associates, speaks on the sidelines of the Ambrosetti Forum in Cernobbio on Lake Como, Italy, on “The Pulse With Francine Lacqua.”Source: Bloomberg

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By Craig Stirling, Sonja Wind, and Flavia Rotondi

September 1, 2023 at 11:25 AM UTC

This article is for subscribers only.

Brittle financial markets and their vulnerability to swings in data are troubling observers gathered by Lake Como just as investors take fright at the prospect of stagflation in Europe.

Nouriel Roubini warned of a potential over-valuation in stocks as the Cernobbio Forum began in the northern Italian resort on Friday. His fellow economist Mohamed El-Erian said investors have become too fixated on each economic statistic without seeing the bigger picture.