{"id":523599,"date":"2022-12-08T21:12:02","date_gmt":"2022-12-08T18:12:02","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-stocks-could-fall-in-severe-recession-nouriel-roubini\/"},"modified":"2022-12-08T21:12:02","modified_gmt":"2022-12-08T18:12:02","slug":"us-stocks-could-fall-in-severe-recession-nouriel-roubini","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-stocks-could-fall-in-severe-recession-nouriel-roubini\/","title":{"rendered":"#US stocks could fall in severe recession: Nouriel Roubini"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a34d521055fd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a34d521055fd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-stocks-could-fall-in-severe-recession-nouriel-roubini\/#%E2%80%9CUS_stocks_could_fall_in_severe_recession_Nouriel_Roubini%E2%80%9D\" >&#8220;US stocks could fall in severe recession: Nouriel Roubini&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CUS_stocks_could_fall_in_severe_recession_Nouriel_Roubini%E2%80%9D\"><\/span>&#8220;US stocks could fall in severe recession: Nouriel Roubini&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>US stocks will have much further to fall if the economy careens into a severe recession next year, according to a prominent economist known as \u201cDr. Doom.\u201d<\/p>\n<p>Nouriel Roubini, a New York University professor emeritus known for his pessimistic economic predictions, warned the S&amp;P 500 could plunge another 25% in the event of a severe downturn in 2023. <\/p>\n<p>The broad-based index has already fallen about 17% since January during a period of sustained market volatility.<\/p>\n<p>\u201cEven if you have a short and shallow recession, typically, from peak to trough, the S&amp;P 500 falls by 30%. During the [global financial crisis], it fell by 50%,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=WjnTjcg1L4U\">Roubini told Bloomberg<\/a> on Wednesday.<\/p>\n<p>\u201cIf we have something more severe than a short and shallow recession but not as severe as the global financial crisis\u2026 you have another 25% downside potentially in the markets,\u201d Roubini told\u00a0Bloomberg.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/Nouriel-Roubini-89.jpg?w=1024\" alt=\"Nouriel Roubini\" class=\"wp-image-24942530\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/Nouriel-Roubini-89.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/Nouriel-Roubini-89.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/Nouriel-Roubini-89.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Nouriel Roubini expects the US economy to enter a severe recession next year.<\/figcaption><figcaption><span class=\"credit\">Getty Images for Concordia Summi<\/span><\/figcaption><\/figure>\n<p>Roubini has warned for months that the US economy will suffer a \u201chard landing\u201d as the Federal Reserve sharply hikes interest rates to tackle inflation. In July, \u201cDr. Doom\u201d called predictions of a shallow recession \u201cdelusional\u201d due to rampant \u201cstagflation\u201d \u2013 defined as a combination of stagnant economic growth and high inflation.<\/p>\n<p>At present, the market expects the Fed to hike its benchmark interest rate to about 5% in 2023 \u2013 up from its current range of 3.75% to 4%. But Roubini sees the rate rising \u201ccloser to 6%\u201d to tamp down inflation.<\/p>\n<p>The Fed is slated to hold its final policy meeting of the year next week, with an announcement on its next interest rate hike expected on Wednesday. The market expects the central bank to hike by a half percentage-point, according to CME Group data.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-90.jpg?w=1024\" alt=\"NYSE traders\" class=\"wp-image-24942533\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-90.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-90.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-90.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Fed rate hikes have weighed on the stock market.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Roubini told Bloomberg the continued hikes will hammer credit markets and cause major stress for \u201czombie\u201d businesses with poor balance sheets. He argued that many distressed companies were \u201ceffectively insolvent\u201d prior to the Fed\u2019s policy tightening.<\/p>\n<p>\u201cDuring the COVID crisis, those institutions, those corporations not only didn\u2019t go bust, but they were bailed out when they went to zero rates. We even bought high-yield bonds and therefore everything was bailed out and they borrowed even more,\u201d Roubini said.<\/p>\n<p>Roubini isn\u2019t the only economic doomsayer warning of rough economic conditions in the year ahead.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-91-1.jpg?w=1024\" alt=\"NYSE traders\" class=\"wp-image-24942535\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-91-1.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-91-1.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/NYSE-traders-91-1.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The S&amp;P 500 has fallen about 17% this year.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Last month, Michael Burry, the hedge fund boss made famous in the 2015 film \u201cThe Big Short,\u201d said a \u201cmulti-year recession\u201d was essentially unavoidable because the Fed lacks good options to address the situation.<\/p>\n<p>Roubini replied to Burry to say he had also predicted \u201ca long and severe recession.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/12\/08\/heres-how-much-us-stocks-could-fall-in-severe-recession-dr-doom-economist\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;US stocks could fall in severe recession: Nouriel Roubini&#8221; US stocks will have much further to fall if the economy careens into a severe recession next year, according to a prominent economist known as \u201cDr. Doom.\u201d Nouriel Roubini, a New York University professor emeritus known for his pessimistic economic predictions, warned the S&amp;P 500 could&#8230;<\/p>\n","protected":false},"author":1,"featured_media":523600,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/Nouriel-Roubini-88.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[79281,136931,5069,70550,91261,80348,70359],"class_list":["post-523599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-nouriel-roubini","tag-12-8-22","tag-economy","tag-federal-reserve","tag-recession","tag-sp-500","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=523599"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/523600"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=523599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=523599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=523599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}