The market ‘bloodbath is likely to continue’ with investors set to lose tens of trillions over next decade, Nouriel Roubini says

Originally Published by By Filip De Mott

World economies are facing a “megathreatened age,” with stagflation set to become a core driver of major market headwinds, “Dr. Doom” Nouriel Roubini said in a Project Syndicate article published Friday.

This will be reflected in both equity and fixed-income markets, as the downturn that investors suffered in 2022 becomes a long-term trend.

“This bloodbath is likely to continue,” Roubini wrote.

Assuming inflation averages 5% instead of the Fed’s 2% target, long-term bond yields would need to be close to 7.5% for a real return of 2.5%, he explained.

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