What’s the best way to tame our fears and become confident long-term investors? Let’s listen to what some of my favorite bears have to say and then take a look at the big picture.
The most ominous threats are that of a European bank failure or double-dip recession that would slam both the U.S. and Eurozone. One of the most vocal ursines — Nouriel Roubini, professor of economics at New York University — starts out his jeremiad by asking the question “Is Capitalism Doomed?”
“The massive volatility and sharp equity-price correction hitting global financial markets signal that the most advanced economies are on the brink of a double-dip recession,” Roubini writes.
Bemoaning the Euro debt crisis, America’s fiscal crisis and even the Japanese earthquake and tsunami, Roubini is not sanguine the current system can handle these calamities. Consumers are gloomy and the U.S. housing market is still in the dumps.