The rally in global equity markets isn’t reflecting risks to economic growth from the European debt crisis and U.S. spending cuts, said Nouriel Roubini, the New York University professor famous for predicting the 2008 crisis.
Global stocks have gained more than $2 trillion since the start of 2013 as central banks move to stimulate economic growth. Risks including a deeper recession in Europe triggered by austerity measures and political turmoil as well as slower U.S. economic growth may return in the second half of the year, said Roubini, chairman of Roubini Global Economics LLC.
“Those risks are currently somehow under-priced by the market,” he said today in an interview. “They may be contained in the first half of the year, but they may re-emerge.”

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