Nouriel Roubini is a world-renowned economist who teaches at New York University’s Stern School of Business. He has been nicknamed “Dr. Doom” for his pessimistic predictions of what will happen in the world economy. He also correctly anticipated and predicted the 2008 financial crisis that sent the U.S. economy into a tailspin.
Now Roubini is back, and his predictions for what to expect both in the United States and worldwide on the economic and political spectrum in 2020 are bad news for Donald Trump, who thinks he can ride the economy to a second term in office.
In an interview he gave to the German magazine Der Spiegel, Roubini says global equities are in for a rough ride:
“I expect global equities to tank by 30% to 40% this year.”
The best strategy for investors, Roubini noted, would be to hold on to safe investments such as cash and government bonds:
“You have to hedge your money against a crash. That’s my motto: Better safe than sorry!”
Iran will also play a major role in 2020, according to Roubini, who says escalating tensions between the U.S. and Iran will drive up prices in the oil market and lead to Trump’s defeat:
“Drive up oil prices and lead inevitably to Trump’s defeat in the elections … The Democratic field is poor, but Trump is dead.”
And then there’s the coronavirus, which Dr. Roubini expects will cause major worldwide economic problems, possibly even a global recession, according to Business Insider:
“‘The markets are completely delusional,’ Roubini told Der Spiegel. He said that if the coronavirus were to cause China’s economy to shrink by 2% in the first quarter and grow by only 6% in each of the next three quarters, the slowdown ‘would essentially mean a recession for China and a shock to the world.
“A coronavirus outbreak in the US would escalate the situation, Roubini said.
“‘I live in New York City, and people there are hardly going to restaurants, cinemas, or theaters,’ he said, speaking before the city confirmed its first case on Sunday. He added, ‘If it comes, we are totally f—ed.'”
New York City has indeed reported its first case of coronavirus. And more are expected. The same will likely be true in every major American city within a month, according to medical experts.
The election is still eight months away. But with each day, the economic picture is getting worse for Trump. We may well be on the verge of a recession. But if that helps rid us of Donald Trump, it might be worth some momentary pain.