Sources close to traders at Brentwood Group suggest that the wave of buying activity that helped propel US exchanges to register record gains is likely to lose impetus.
The Brentwood Group sources are thought to believe that reality is likely to seep into investor sentiment as concerns over corporate profitability;
Confidence that markets would provide another day of strong gains following bank recapitalization announcements made by President George W. Bush, Hank Paulson and Ben Bernanke fizzled out as sharp advancement gave way as modest falls on both the DJIA and the Nasdaq worsened.
Although Brentwood Group is reportedly considering investment in selected banking concerns, they apparently remain cautious and mindful of the potential for markets to simply trade within a range.
Brentwood Group continues to advise clients to avoid speculative forays into the markets until the markets digest the implications for banks with significant government stakes.
