‘Sun Worldwide’, the Asian-based asset management firm, believes that the recent rally in stocks that began with bullish comments by Vikram Pandit, CEO of Citigroup, will reverse sharply when the large US banks begin their latest round of quarterly reports.
Analysts at ‘Sun Worldwide’ suggested at the time of Mr. Pandit’s comments, that markets were rallying on smoke and mirrors and that the banks were, strictly speaking, insolvent.
US Treasury Secretary, Timothy Geithner recently confirmed the existence of a “placeholder”
Sources close to ‘Sun Worldwide’ speculated that the markets would more than likely retest their recent lows but signaled a glimmer of hope by suggesting that the retest would probably mark the bottom in equity markets.
‘Sun Worldwide’ recently opined that there was a distinct likelihood of a major bank failure by the end of the 2nd quarter of 2009.
