Economist Nouriel Roubini, has strongly recommended selling US stocks unreservedly and short in the remainder of this year.
He indicated his strong expectations of a decline of up to 10%.
In an interview conducted by Bloomberg, Roubini relied on the possibility of a slowdown in global economic growth in light of the continued rise in oil prices and inflation rates.
He explained: “This issue is extremely important given the recent developments in the US economy and the global economic situation, in addition to the rise in oil prices and high levels of inflation… It’s worth noting that the Federal Reserve and other central banks haven’t yet finished raising interest rates”.
Roubini, known for his frequently alarming forecasts and warnings, noted that slowing global economic growth and high inflation are the main challenges at the moment and must therefore be carefully considered.
Short selling refers to the process of selling a borrowed security with the aim of later buying it at a lower price, allowing profits equal to the difference between the original selling price and the subsequent purchase price.