Just three weeks ago, on February 7, everyone heard it loud and clear: Nouriel “Dr. Doom” Roubini was bullish on stocks. “We’re a believer; we’re celebrating. We think the rally has legs,” said Gina Sanchez, his firm’s equities manager.

But something happened and they had a sudden change of heart.

“We’re still long. I would say we’re eyeing the exits. The risks are getting a little more balanced,” she said on CNBC.

Europe, she said, is still a risk despite all of the liquidity and intent to cut tail-risk in the hopes of averting a Lehman-like event.

“However, that doesn’t change the fact that Europe is still in a recession, and it’s going to continue to go into a recession, and that’s going to make hitting all of the numbers required for some of these austerity packages very, very difficult, particularly for the periphery – lots of execution risk,” she said.

Sanchez said that the main positive catalysts for the market may have already occurred, including a long-term refinancing operation, the potential of a bailout for Greece and positive rhetoric in Europe.

“All of those things that we expected would push up the market have happened,” she said. “And so we’re going to basically get back around to the things we said before, that this is a weak economy, and the data is still not convincing to us.”

Kinda confusing, isn’t it? We’re still lost …

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