May 27 (Bloomberg) -- A bear market in European stocks will last another six to 12 months and a ``superbearish'' scenario featuring a prolonged period of stagflation can't be ruled out, the region's top-ranked strategists at Morgan Stanley said.
I guess the European branch of some Wall Street brokers get to speak their mind a little more than our glorified used car salesmen.
We are not going to argue with the markets if they decide the worst is over. But for now we are still in a bear market, which means overbought should be sold and oversold should be treated with caution.
``We are not bullish on the remainder of 2008 as we think the bear-market rally is over,'' the strategists, led by London- based Teun Draaisma, wrote in a note dated May 23. ``We have a real-estate crisis, a credit crunch, an inflation problem, an oil crisis'' and peak margins, they said.
I guess the European branch of some Wall Street brokers get to speak their mind a little more than our glorified used car salesmen.
We are not going to argue with the markets if they decide the worst is over. But for now we are still in a bear market, which means overbought should be sold and oversold should be treated with caution.
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