Stock recovery too soon and too strong, causing a risk of correction

The stocks have been rising too quickly and too heavily since their lowest point in March, causing a risk of correction. The real economy is hardly recovering whereas the markets are going up strongly according to New York University-professor Nouriel Roubini who sees a growing gap. He fears that soap-bubbles are being blown due to government intervention. Stocks need gradual growth equal to economic growth to avoid the creation of financial bubbles and the risk of correction.

Nico Vermeulen
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