Market DispatchesMarket Dispatches

'Dr. Doom' index hints it's time to buy

When Nouriel Roubini's popularity in Internet searches rises, stocks tend to fall. So what happens when his popularity sinks?

By MSNMoney partner Oct 20, 2010 11:01AM
Insider Monkey, writing today for Seeking Alpha, looks at the Roubini Sentiment Index, which tracks analyst Nouriel Roubini's popularity in Internet searches.


Monkey notes that since 2007, spikes in "Dr. Doom's" popularity "were followed by an average 1.6% decline in the S&P 500 index in the following three-week periods."

Monkey continues: "If jumps in Roubini's popularity imply investors are becoming increasingly fearful, then large declines in Roubini's popularity should imply that investors are becoming greedy (or less fearful)."


Monkey tested this theory, and you can read more about it here.


In conclusion, Monkey notes that on Oct. 10, Dr. Doom's popularity fell below its eight-week moving average. "This is a very bullish sign showing investors' optimism about the stock market."


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7Comments
sssp810
Oct 20, 2010 3:41PM
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This may be nice to know but was this article really worth writing? Who in their right mind is going to use this info as a market timing tool?

ack 67
Oct 23, 2010 9:31AM
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Who in Gods name would give any credence to the bu-----t that comes out of CNBC, Roubini, General Electric school of socialism?
FED_BS
Oct 20, 2010 6:11PM
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Just another article trying to get suckers to chase the stock market.

 

Listen FED and all you scam artists. I will NEVER invest in market again nor will my children. Screw all of you.

Ima_GD_Red
Oct 25, 2010 12:40AM
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I like this article, but I already thought that it was a good time to buy before I read it.  So my approval may just be my inclination to praise anyone who agrees with me.

Tim-K
Oct 20, 2010 4:42PM
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Or people are sick of the B___ S___ associated with these signs and not paying any attention to one particular source or sentiment fund.

 

Don't buy, Don't buy till we see how people actually feel ,after the Nov elections.

OGRE ALEX
Oct 20, 2010 10:47PM
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OUTSIDER OGRE  thinks   Doom/Monkey  need to stop taking kickbacks from  CNBC/Street.com

 

Me,  Im still hoping for  a HINDENBURG catastrophe!

 

SO THERE

OGRE ALEX
Oct 23, 2010 12:51AM
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I find it telling that  MSN repeats  days old articles that had little interest.

 

Oh well, at least they arent attacking Glenn  Beck this weekend.

 

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