Dr. Doom: ‘Stocks Will Tank, Trump Presidency Is Over’

Nouriel ‘Dr. Doom’ Roubini, professor at NYU’s Stern School of Business, believes that equities will drop by as much as 40% in 2020.

“I expect global equities to tank by 30% to 40% this year,” said Roubini.

“My advice is: Put your money into cash and safe government bonds. You have to hedge your money against a crash.”

Roubini frequently makes bearish calls. His most recent bear call stems from the coronavirus and the possible political ramifications of the coronavirus.

Even before the coronavirus hit NYC, Roubini noted that there was a sense of dread in the air.

“I live in New York City, and people there are hardly going to restaurants, cinemas or theaters, even though nobody there has been infected by the virus thus far.”

“If it comes, we are totally f***ed,” said Roubini.

Roubini anticipates the coronavirus will be an obstacle to President Trump’s reelection chances.

“[Trump] will lose the election, that’s for sure,” Roubini said.

“This has always the case in history. Ford lost to Carter after the 1973 oil shock, Carter lost to Reagan due to the second oil crisis in 1979, and Bush lost to Clinton after the Kuwait invasion. The Democratic field is poor, but Trump is dead.” 

Possible U.S. quarantine

The United States is still grappling with how to handle the spread of COVID-19, the coronavirus.

Gov. Andrew Cuomo declared a state of emergency in New York on March 7th.

Jefferies equity strategist Simon Powell believes if quarantine is undertaken in New York City, like the one seen in Wuhan, that the markets would react negatively.

“Imagine trying to quarantine a large city in the USA for a month, similar to how the Chinese have shut down Wuhan, or the way the Italians are trying to ring-fence 10 towns near Milan,” said Powell.

“Our working hypothesis is that it wouldn’t work, and could cause panic on a scale that would spook markets.”

Iaccino: Bitcoin a Better Hedge Than Gold? Look at the Data

Bob Iaccino, editor of the Stock Think Tank, sees the relative stability of Bitcoin compared to gold as a sign that its legitimacy as a hedge is coming into view.

costco cost

The Dividend Stock That Belongs in Every Portfolio

If you are like me, then you are always looking for great companies that are on sale. What makes the company a bonus buy is when it also pays a

Bitcoin and Gold Slaying Stocks: Why Not Own Both?

The Bitcoin vs. gold battle rages on as the two are best-performing assets of 2020. The price of gold is up 26% this year, while Bitcoin has soared 87% —

Companies Pile On Debt. Big Headaches Later for Investors?

How have companies handled the cash crunch during this pandemic? I came across an insightful in-depth research report this past week that had a few interesting charts on this. See

Potential Options Payoff in Post-Covid China Rebound

The Chinese economy is starting to show signs that it is rebounding better than other economies around the world. China was the first country that had to battle the COVID-19

Retirement Income Tip: Buy High-Yielding Dividend Stocks

Imagine a scenario where you can make money while you sleep. Sounds too good to be true, right? Enter high-yielding dividend stocks. Now, there are lots of stocks in the

Beat the S&P 500 with These Specific Stocks

Today I'm going to briefly discuss a major error that most stock market participants make on a regular basis and ways in which you can substantially increase your stock returns.

Iaccino: Dollar Down, Stocks Higher, Plus PayPal Meets Bitcoin

A renewal of federal stimulus on top of monetary stimulus after the election is likely to support the stock market, says Bob Iaccino, editor of the Stock Think Tank. The

investor or pay off debt

Invest or Pay Off Debt? In a Pandemic, I’m a Stock Buyer

If you were to tell someone that you were putting any extra cash you had into the market instead of paying off debt, they might think you have lost your

bitcoin mass adoption

Bitcoin Mass Adoption Can’t Be Far Off — That Means Surging Demand

When you look at past technological developments — from the 19th century industrial revolution through the introduction of the telephone, personal computers, Internet, and smartphones — there is a typical

stocks overvalued

Is the Stock Market Overvalued? Not By This Measure

You many have heard the term “TINA” mentioned in various financial and investment commentaries in recent months. This is an acronym for “There is No Alternative.” It is built around a

clx options

Options Play: Take Advantage of Bearish Sentiment On Clorox (CLX)

We are in the middle of a global pandemic and one of the best weapons against the virus is cleaning surfaces with bleach. If we were to ask 100 people