Nothing much to add to the following Bloomberg report, except that the market is over-extended and participants over-bullish in the wake of a global slowdown, bubbles popping around the world, and sovereigns default...
Global Strategists Abandoning Bearish Views After Missing Rally
Feb. 2 (Bloomberg) -- Strategists at the biggest banks are
capitulating on their bearish forecasts after the best start to a year
for global stocks since 1994 and gains of more than 7 percent in
emerging-market currencies.
Just two weeks after saying that investors should
“remain cautious,” Larry Hatheway, the chief economist at UBS AG, raised
his recommendations on global shares and high-yield bonds in a Jan. 23
note to customers entitled, “Wrong, but not too late.” Royal Bank of
Scotland Group Plc, and Benoit Anne, the global head of emerging-markets
strategy at Societe Generale SA, said their estimates for developing
nations were proven wrong.
The MSCI All-Country World Index climbed 5.7
percent in January, surprising strategists at Bank of America Corp.,
Goldman Sachs Group Inc. and Barclays Plc who had forecast first-half
losses because of Europe’s debt crisis. JPMorgan Chase & Co. and
Citigroup Inc., which predicted the rally in stocks, say it will
continue as the U.S. housing market rebounds and China eases lending
restrictions to bolster economic growth.
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