Markets have been trading down in the last week. All indications point to a top in the market rally and a coming correction. This correction should be complemented by a dollar and bond rally. Commodities and emerging markets will come under heavy pressure, while developed markets and blue chips will outperform (although they will still track the market lower).
2010 is going to be a "corrective" year but not like 2008. The trillions of dollars sloshing around the globe courtesey of helicopter Ben should provide support to asset markets. However, markets are currently severely overbought. Future earnings should likely disappoint. This rally was partly driven be inventory restocking, which is now over. We went from an oversold position in March 2009 to currently what is an overbought position.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment