Nouriel Roubini forecasts a further 20% decline in the US market

This year the S&P 500 went through a strong fall. In June the index decreased by more than 20% compared with the previous January low. Now it faces a bearish market. Despite the index being raised several times, investors said that the cost of shares is still decreasing, and the bearish market will last only several months. According to Nouriel Roubini, one of the few who could predict the crisis of 2008, we should get our hopes down.  

As many economists and bank owners say about the upcoming recession in the USA, the cost of shares may decrease even more. Nouriel Roubini previously lectured economics in New York and also worked in the U.S. Treasury. Not so long ago, he gave an interview to Fortune.

In this interview, he said that amid the global crisis, markets will fall from a 40% high. Currently, the fall has already happened by 20%, and another 20% is ahead. Most experts have so far talked about a fall of only 20%. 

The experienced expert is convinced that a long and hard recession awaits. It will combine all the worst that happened during the oil embargo of the 1970s and the global financial crisis of the 2000s.  

Also, Roubini suggested another option when he was asked whether he believed in the forecasts of famous investor Stanley Druckenmiller. According to these forecasts, the cost of shares won’t grow for several upcoming years. He said that possibly a period similar to 1973 - 1982 awaits us. At this time, shares were falling in price, and their value was extremely low for a long time.