If Roubini's Dying Popularity Rebounds, You Know The Market Will Be Toast

Roubini searches on Google skyrocketed as U.S. stock markets crashed during the crisis. The more popular he got, the more money you lost:

Ekonomi Turk:

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.


Indeed, Roubini searches have been falling over the last year as global markets have rallied. Thus the professor’s meme is in desperate need of a sustained market correction, and if you see a spike in attention, it will mean your stock portfolio is losing money again.


Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.