EKONOMI TÜRK posted an interesting article on the popularity of “Dr. Doom” A.K.A Nouriel Roubini and the level of the S&P 500. His conclusion:
“If he is indeed Dr. Realist, his name’s popularity should be positively correlated with the S&P 500 index. However, if he is indeed Dr. Doom, his popularity should be negatively correlated with S&P 500 index. …
1 unit increase in Roubini’s popularity is associated with a 114 point decline in S&P 500 index. His popularity was 5.5 in March 2009 and it is 1 now, so this implies that S&P 500 index should increase by about 114*4.5= 513 points since March 2009. Considering that S&P 500 was around 680 when Roubini’s popularity peaked the last time, our regression tells us that S&P 500 index should be around 1200 today.”
Read the full post here.