Berinyi vs Roubini: Damned if They Do, Damned if They Don't

Laszlo Birinyi, founder of CT's Birinyi Associates Inc, sais this week that he is very optimistic about the economy. He maintains the U.S. economy's rebound will be stronger than most people expect. His forecast is based on the recent rally of the S&P500 index (the same one which we discuss here as being near overbought and with stratospheric P/Es).

He says:

"The markets are suggesting that the economy has turned the corner and is going to do a lot better than most people anticipate". In May, he said that the S&p 500 will reach 1,700 in the next two to three years.

Nouriel Roubini, the now famous New Your University professor, however, says that the odds have increased that the economy will worsen.

"There are risks associated with the exit strategies from the massive monetary and fiscal easing". "Policy makers are damned if they do and damned if they don't". Roubini also says the recession will not be formally over before the end of the year.

There are many economists and many talking heads out there with different opinions. Some will be right and get the bragging rights.

(Quotes from Bloomberg)