According to Nouriel Roubini, A major American economist who predicted the 2008-2009 global crisis, says investors should get ready for major disappointments later this year. He made such a statement during the recent Ambrosetti Forum in Italy.
The founder of Roubini Global Economics LLC reports that tax hikes and spending cuts may hinder the US economic recovery. The professor admits that spending cuts can be implemented at the expense of the income tax as well as the tax for the super-rich.
He says the retail sales industry may see a major decline, which may eventually turn into a disaster. Mr. Roubini, who is famous for his pessimistic forecasts, assumes that the US GDP will only grow by 1.5% at best.
As a result, financial markets will be shocked by the pace of the US economic slowdown later this year. He expects quarterly income reports that will be published later this year to disappoint investors, thereby making the US stock market retrace. - in www.profi-forex.us
