MarketsInsider/Nouriel Roubini/8-9-2022
“The world economy is undergoing a radical regime shift,” he said in an op-ed for Project Syndicate on Tuesday, declaring the end of the Great Moderation, during which economies enjoyed low inflation, high growth, and mild recessions. Those qualities have been the standard for the past few decades, but are reversing into what Roubini dubs as the Great Stagflation: an era of high inflation, low growth, high debt, and the potential for severe recessions.”
USAGOLD note: Roubini says both stocks and bonds will suffer potentially massive losses during the coming stagflationary storm. Such thinking blows a hole in the traditional 60-40 portfolio. The cautious sailor would be well-served by heading for safe harbor.
