Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Roubini’s Sentiment Index Sending Bullish Signals

Nouriel Roubini has been one of the permabears predicting doom in this market for most of the past 7 to 8 years. His popularity skyrocketed with the onset of the financial crisis. His rhetoric didn’t change much but people’s demand for Roubini’s latest prognostications has been a reliable indicator for the direction of the stock market. Whenever investors are turning bearish about the market, they search for Roubini’s latest opinions on the internet. Jumps in Roubini’s popularity in Google searches lead the declines in the stock market by up to 2 weeks. On the other hand, declines in Roubini’s popularity in Google searches is an indicator for bullish sentiment.

Roubini Global Economics

Recently Roubini’s popularity peaked on October 31st. This was followed by a dismal November stock market performance. Since October 31st, Roubini’s popularity went down by more than 25%, reaching the relatively low level that we saw at the beginning of October and August after spectacular increases in the stock market.

Currently Roubini Sentiment Index is 10% below its four-week moving average, sending a moderately bullish signal for stock prices. The Roubini Sentiment Index saw lower values in March and April 2010, but the European debt crisis helped Roubini to increase his popularity by four-fold in a matter of weeks. His popularity is still 50% more than the lows we saw this spring.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...