HOT: Roubini Turns Bullish on U.S. Stock Market

The bullish stock market that EPJ, nearly alone, called before the first of the year has now resulted in perma-bear Nouriel Roubini  six weeks later turning bullish.

CNBC reports:

On Wall Street, behind the scenes chatter has everything to do with gains in the S&P and whether the stock market is at the beginning of a major march higher. Stocks certainly started the new year with a bang, the S&P 500 gained nearly 7 percent in about 6 weeks

The sheer force of the rally as well as the inability of sell-offs to gain traction has forced skeptics such as Fast trader Steve Grasso to completely re-think positions.

And from what we’re hearing – Grasso is hardly alone - a major market skeptic is changing his tune.

The perennially negative Nouriel Roubini – nicknamed Dr Doom for his usually critical views – is turning bullish. You read that right, Roubini is betting on additional stock market gains.

“We’re a believer; we’re celebrating. We think the rally has legs,” explains Gina Sanchez, Roubini’s director of equity and allocation strategy.


She tells us that Roubini’s firm currently recommends being overweight equities, playing cyclical areas of the market such as technology. “Also we’d take some tilts into staples and telecom to collect yield. And we’d also be overweight ag and livestock. Generally we’d take advantage of the risk rally.”

Notice the mention of ag stocks. This is what I wrote in the EPJ Daily Alert on December 23.:

I am now bullish on the US stock market, especially energy and agriculture stocks

This is a completely Bernanke fueled manipulated stock market and economy. Next will come my other forecast for the new year:

The consumer price index will begin to show increases on an annualized monthly level , even at the "core" level, of between 5% and 7%. If Bernanke keeps annualized money supply growth above 8% for the first half of the year, the headline consumer price index will climb well into double digits.