Roubini: Stocks could drop 50% from top

MarketWatch/Nouriel Roubini/7-1-2022

“Most of those who have come late and grudgingly to the hard-landing baseline still contend that any recession will be shallow and brief. They argue that today’s financial imbalances are not as severe as those in the run-up to the 2008 global financial crisis, and that the risk of a recession with a severe debt and financial crisis is therefore low. But this view is dangerously naive. There is ample reason to believe that the next recession will be marked by a severe stagflationary debt crisis.”

USAGOLD note: Roubini breaks it all down in the analysis linked above. A 50% drop in the Dow Jones Industrial Average from the top would put it at about 18,000 – a drop of another roughly 40% from where it closed yesterday.