So the stock market is a leading indicator of Nouriel Roubini’s popularity. (Alternatively, Nouriel’s popularity is a leading indicator for stock market declines,… but I doubt it). – Ilene
CHART OF THE DAY: HOW TO PROFIT FROM NOURIEL ROUBINI
Courtesy of The Pragmatic Capitalist
Interesting chart here from the Ekonomi Turk showing Nouriel Roubini’s popularity (as expressed by Google Trends) versus the performance of the S&P
“When you look at the graph, you will notice the negative correlation especially after Summer of 2007. The graph covers Aug 2006- Apr 2010 period. The last time Roubini’s popularity increased tremendously was March 2009. Since then Roubini’s popularity has been declining and the stock market has been increasing. I also ran a regression test and found that 1 unit increase in Roubini’s popularity is associated with a 114 point decline in S&P 500 index. His popularity was 5.5 in March 2009 and it is 1 now, so this implies that S&P 500 index should increase by about 114*4.5= 513 points since March 2009. Considering that S&P 500 was around 680 when Roubini’s popularity peaked the last time, our regression tells us that S&P 500 index should be around 1200 today. “
Source: Ekonomi Turk
