Mine looks more like tic-tac-toe because we're running out of investment banks to play with... How about marking an X for "Bear Rally is Over" and an O for "Bear Rally Still Has Legs"... or even "It's all over, happy days are here again" (maybe that needs an OOO!)
Are you ready to play? No? Good! Here we go:
Over at Credit Suisse, strategist Andrew Garthwaite in his 2Q Global Asset Allocation strategy piece last week (16th) said that we are "Close to the end of a capitulation rally" but also that "We do not believe that this is the start of a new bull market, but rather that we are in the bottoming process" - somewhere within those 72 pages, he called for max another 5% upside in the markets this round, which we've since seen. Buzz!
Today we see that the highly regarded Teun Draaisma of Morgan Stanley, their European equity strategist, states quite clearly that the "bear rally is over" with MS's market timing indicators giving warning signs, sentiment indicators no longer bombed-out and some fundamental considerations such as the BOE's Fed-like move to accept mortgage collateral for gilts. Buzz!!
I can hardly contain myself!
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More from Mr Draaisma's note:
"In general we're set for a sustained period of weak economic growth in western economies as the credit crunch impact takes a long time to play out. Conversely, the growth dynamic in major emerging economies is underpinned by secular forces that should prove resilient. That means commodity prices are unlikely to ease significantly this year, which supports our positive bias to the oil, utilities and materials sectors."
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