New York University Professor Nouriel Roubini — who has been dubbed “Dr. Doom because of the predictions of financial woes he’s (often correctly) made in recent years — tells Yahoo’s Tech Ticker that he sees another 20 to 30 percent of downside risk for stocks, but adds that he’s not in the “financial Armageddon camp”. Roubini, who is also the chairman of the RGE Monitor research group, sees a severe recession through 2009, but doesn’t think we’ll see another Great Depression, or a repeat of the decade-plus deflationary recession that has plagued Japan. Want proof that he sees a good long-term future for stocks? Roubini says his 401k is entirely in equities.

In the relatively short term, however, Roubini says people will be surprised how bad the economy will get. For now, he advises that active investors avoid “risky assets” like commodities. He recommends Treasuries, and, over the medium term, corporate debt.