Markets Overestimating Trumponomics, Says Economist Nouriel Roubini

U.S. markets have shrugged off the nervousness around the election of President Donald Trump and rallied, but economist Nouriel Roubini says the euphoria in stocks isn’t justified.

“The markets are overestimating what Trump is going to be able to do”, said Nouriel Roubini, chairman of Roubini Global Economics, in an interview to Bloomberg. According to him, the market have been underestimating the downside risks that come with Trump’s policies such as trade protectionism, curbs on immigration and micro management of the corporate sector.

U.S. stock markets have scaled record levels over the last couple of months. The volatility index has dipped to its lowest levels in a decade, as the earnings season bolstered investor optimism.

This “euphoria” isn’t justified by the data, Roubini added.