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Roubini Vs Bulls – Who's Winning?

Are the bulls starting to lose their grip on this market? If you ask Nouriel Roubini, he would likely tell you, “yes!”

During a CNBC interview the market maven again made the case that the market’s day of reckoning may be at hand.

Specifically he expressed concern that Wall Street is way out of step with Main Street -- he thinks investors are pricing in a V-shaped recovery that likely won’t happen. And “If earnings data surprises on the downside (and shows the recovery is not V-shaped) then there is going to be a significant correction."

As for the sharp move higher in the price of oil, Roubini doesn’t see any reason for that either. "It seems to me that this rally in oil prices is way ahead of the economy," he said.

And Roubini doesn’t think banks are out of the woods either with more losses likely ahead. That sounds bleak but it’s probably not surprising you, coming from Roubini, who has been nicknamed Dr. Doom.

And we’d be remiss not to acknowledge that there’s another side to the argument and one that’s much sunnier. Jason Trennert, Strategas Partners chief investment strategist is among those who believe the market is simply taking a pause before heading higher.

“This is a liquidity driven market,” Trennert tells Fast Money. “The fundamentals don’t support the market going up a lot more but I still think it’s more dangerous to be short then to be long.”

In other words he’s bullish until the bill comes do. “With all the stimulus in the market it almost has to go up -- but eventually we’ll have to pay for it.”

So how long should you hang on?

”I think at a certain point we’ll start hearing things about higher taxes and long term interest rates. They’re almost inevitable due to all the stimulus. When you start to hear chatter about that, then it’s time to get off the train,” Trennert say.

Trennert and Roubini are two smart guys with very different ideas on how events play out. What do you think? We want to know!





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Trader disclosure: On October 26th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (BIDU) Dec. Call, Is Short (BIDU) Nov. Call; Najarian Owns (DNDN) Calls, Owns (DNDN) Puts; Najarian Owns (YHOO), Is Short (YHOO) Calls; Terranova Is Short (FCX)

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