Monday, May 19, 2014

Nouriel Roubini says buy Global Equities

I would be slightly overweight global equities and underweight global bonds. I would be a bit underweight commodities, long dollar and short euro, yen, commodity currencies and some of the other fragile currencies.

In terms of global bonds I would prefer to be in Europe rather than the U.S. in spite of growth being slow in both because I think that this year European equities are going to do better than U.S. equities. This is based on P.E. ratios in the U.S., which are below historical averages and combine with the Eurozone now coming out of the recession. 

So, there is an improvement, tail risks are lower and risk aversion towards European assets is lower.