Six More Months of Carry Trade: Roubini

By: Reuters
Global markets have rallied "too much, too soon, too fast" this year but a correction will not happen right away, as a cheap dollar will still encourage investors to seek higher-yielding assets for a few more months, leading economist Nouriel Roubini said Thursday. Roubini, one of the few economists who accurately predicted the magnitude of the financial crisis, said the U.S. dollar will eventually recover some of its losses, but only in "six to 12 months from now, not any time soon." As a result, carry-trade operations -- in which investors borrow at low short-term rates, in this case in the U.S. dollar, to buy high-yielding longer securities in other markets -- will continue to support prices for a little longer.

http://www.cnbc.com/id/34475969