This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why 'Dr. Doom' Is Buying Stocks (Why I Will Wait on Stock ETFs)

NEW YORK ( ETF Expert) -- One of the most prominent names in perma-bear predicting, Nouriel Roubini, just advised that you buy stocks for a period of about two years. At that time, the professor expects a global economic depression to rock the world markets.

There's a great deal of irony in hearing "Dr. Doom" discuss riding a stock wave higher through 2014. For one thing, his revelation is coming to light at all-time record highs for U.S. equities. And he recommends allocating cash to the broader market at the start of May?

Secondly, Roubini should be more famous for his inaccurate calls than the one that the media claim that he got right. According to many writers, Roubini predicted the 2008 collapse. Yet, his bearish prognostications occurred throughout the 2004-2007 period in which holding cash or short-selling assets would have harmed one's portfolio.

Perhaps more devastating, a follower of Roubini would have suffered mightily in the four-plus years since March of 2009. Now "Dr. Doom" essentially acknowledges (albeit inadvertently) that the central banks can inflate assets better than he can predict their price direction?

Roubini may deserve his guru status for his famous 2008 "call." Then again, he was three to four years early on the reaction of market-based securities to the real estate-based recession.

If market-based investments are beaten to a pulp in March of 2015, as he now contends, it will constitute circumstances where Roubini would be six years premature. Sadly, the media would certainly trot the well-educated economist out for an encore.

In essence, the media are at fault for propping up personalities. The public has a need for heroes and the media fill the void. However, the truth about what the markets may or may not do is far less stimulating; that is, nobody has any idea what will occur or when it will happen.

It follows that an investor needs to look for opportunity where reasonable assumptions fuel well-reasoned expectations of gain. Simultaneously, he/she must maintain an exit plan for avoiding the bulk of a disastrous turn of events. With or without Nouriel Roubini, the future always has a period of reckoning.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.74 -0.54%
FB $119.18 1.20%
GOOG $709.74 1.20%
TSLA $214.93 1.60%
YHOO $37.27 0.89%


Chart of I:DJI
DOW 17,727.66 +66.95 0.38%
S&P 500 2,057.46 +6.83 0.33%
NASDAQ 4,733.1610 +16.0670 0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs