Nouriel Roubini, professor at NYU, on whether US stocks are overvalued

Nouriel Roubini, professor at New York University and chairman of RGE Monitor, says US equities do not look overvalued if a six-month recession is expected. However, as he expects a 12- to 18-month recession, he expects "significant downward pressure on stock prices". Dr Roubini thinks the US can avoid a Japanese-style recession due to the policy response.