Roubini expects the US and global recession to last all of 2023, depending on how severe the supply shocks and financial distress will be. During the 2008 crisis, households and banks took the hardest hits. This time around, he said corporations, and shadow banks, such as hedge funds, private equity and credit funds, “are going to implode”

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In Roubini’s new book, “Megathreats,” he identifies 11 medium-term negative supply shocks that reduce potential growth by increasing the cost of production. Those include deglobalisation and protectionism, relocating of manufacturing from China and Asia to Europe and the US, the ageing of population in advanced economies and emerging markets, migration restrictions, a decoupling between the US and China, global climate change and recurring pandemics.

“It’s only a matter of time until we’re going to get the next nasty pandemic,” he said.

His advice for investors: “You have to be light on equities and have more cash.” Though cash is eroded by inflation, its nominal value stays at zero, “while equities and other assets can fall by 10 per cent, 20 per cent, 30 per cent.” In fixed income, he recommends staying away from long duration bonds and adding inflation protection from short-term treasuries or inflation index bonds like TIPS.