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Nouriel Roubini expects the near-term economic recovery from the coronavirus crisis to be relatively weak, the famed economist told Yahoo Finance in an interview, potentially giving way to an even deeper downturn further down the road.
Until very recently, investors have been aggressively ramping up expectations of a ‘V-shaped’ rebound — until COVID-19 infections began surging nationwide.
However, the the chairman and CEO of Roubini Macro Associates and NYU Stern economics professor explained to Yahoo Finance that a recovery is likely to be more elongated and sluggish — more like a ‘U-shaped’ recovery.
“Both firms and households are going to be spending less and saving more. That implies a very anemic U-shape recovery,” Roubini told “The Ticker” in a broad discussion on Monday.
And Roubini — whose bearish predictions have earned him the nickname of “Dr. Doom” — expects a tepid recovery to eventually morph into a depression even more severe than the 1930s.
While the recovery will start to look like a ‘V’ at the start, it will “soon go into a U,” the economist added. There’s also a risk of a ‘W’, with growth sinking into a double-dip recession if COVID-19 infection rates continue to spike, prompting more lockdowns and pushing the economy into a new contraction.
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THE #1 GOLD PLAY FOR 2020”
It’s not a Mining Stock, ETF, or Bullion – but this virtually unknown $7 investment could hand you a small fortune as gold soars higher
The bull market in gold is finally here.
Since bottoming in August of 2018, gold has soared past $1,400 per ounce… $1,500 per ounce…
And earlier this week, gold just passed the $1,600 threshold for the first time in 7 years.
Many senior analysts at our research firm are predicting it could go much higher this year.
And it’s not just the “gold bugs” saying this. Some long-time gold critics have abruptly changed their tune.
Sam Zell, a man who created a $5.5 Billion fortune in real estate, recently said:
“For the first time in my life, I bought gold.”
Another billionaire investor, Paul Tudor Jones, shared a similar sentiment when he said:
“I have never been a gold bug, it is just an asset that, like everything else in life, has its time and place. And that time is now.“
In short, this could be the best moment in decades to get in on gold.
But I DON’T believe you should rush out and buy gold bars or coins…
See… physical gold moves slowly.
And while the best miners can return hundreds of percent in a gold bull market – most of them are extremely risky.
It’s a business with the same kind of upside as the very best miners… but the risk profile of a dirt-cheap value stock.
I consider it the single best gold business on the planet.
And priced at around $7 today, this stock has tons of upside potential as the price of gold continues to rise.
Keep in mind – you’ve likely never heard of this company. It’s not a miner. It’s not a fund or an ETF.
This business is so insanely undervalued that it could double from its current levels even with no movement in the price of gold.
But if gold takes off the way I’m expecting – the gains could be far higher.
Bottom line: I consider it the #1 way to play the gold rally right now.