Rhody Trader

Why does anyone care what Nouriel Roubini has to say? He’s an economics professor, not someone who manages lots of money who’s trading actions can move the markets. Why is the market reacting to his comments – or the lack thereof as it turns out was the case yesterday and today?

Maybe it”s a combination of a gloom and doom prognostication, an eye for getting himself in the spotlight, and a general public pessimism in many areas of society these days. In that case, he’s nothing more than the public mouthpiece for a lot of people who share his view. That’s nothing to move markets, though, since presumably those people already have the expressed opinions and have probably positioned themselves with that in mind.

Actually, I know why the market reacted as it did yesterday when it was thought Roubini was turning bullish, or at least lest bearish (thanks to CNBC). It’s a classic example of the market finding an excuse for doing what it already wanted. It’s no doubt that the market was already in a bullish mindset. That sort of thing happens all the time, which is why the same bit of news can have a widely varied impact depending on the underlying psychology of the market.

But I still shake my head at the idea that someone who was bearish at the right time suddenly has this reputation as a great pundit. But then I barely listen to the guy (or anyone else really, if I can avoid it), so what do I know.

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