CIG: U.S stocks still look brighter than Treasuries.

Sept. 21, 2009 - PRLog -- According to information recently available to CIG, Treasuries are not as sought after an investment as U.S. stocks in part because the economic growth outlook for stocks appears better as well as their improved liquidity.

Analysts for see the S&P 500 Index finishing the year close to the 930 mark ,below its informal close on recently at around 1,064.

"Of (the) three major asset classes, only the equity market offers significant leverage to the improving growth outlook," the Barclays analysts reported.

"In order for Treasury fundamentals to improve, we would need the economic recovery to stall and the (Fed Res) to expand and extend its asset-purchase program," CIG understood.
Recommended, were among others, technology stocks, industrials and the ever constant energy sectors, both old and emerging green or alternative sectors.

Progress in liquidity conditions would also assist stocks, the analysts said, pointing out: "We think ample liquidity conditions are likely to persist over the course of the year, as traditional monetary policy and (quantitative easing) lead to broader improvement in capital market liquidity."

Central banks, internationally, have been influential in increasing liquidity since the start of the recent credit crisis.
Advisors close to CIG are closely watching Ben Bernanke and the Federal Reserve for any immediate changes in monetary policy in the short term.

# # #

CIG is an exclusive, members only, off shore, private equity investment firm that provides consulting services to like minded members of the private equity and alternative investment community.