“There was a corporate debt explosion before this crisis, and now there is even a greater buildup of corporate debt of very poor quality.
Roubini pointed out that there are a number of triggers that could kick off a significant correction in the U.S.
This means that the stock market is priced for a goldilocks scenario, where growth will be strong, inflation will remain low, and the Fed is still going to hold.
It started to weaken when long rates were rising not only in nominal terms but also in real terms. It started to weaken also because there was a period where the dollar was strengthening rather than weakening,” Roubini said.
However, there was a shift in the last couple of months, with the price starting to go higher.
“Given the trend of monetizing fiscal deficit, gradually rising inflation, social-political problems, geopolitical problems, the gradual weakening of the value of the U.S.
He continued: “My medium-term outlook for gold is for prices to go gradually higher.
And because of the fiscal stimulus, our current account deficit will become even larger over time,” he said.
The greenback is also at risk because the U.S.
If they go into euro and yen, they increase the value of the euro and yen and create trade friction with Japan and Europe.
“Stocks give you a dividend, bonds give you coupon, loans give you interest, real estate gives you rent or housing services.
equities were down 35%, bitcoin was down 50%, and other top ten cryptocurrencies were down 60%.