Attachment
“Sun Worldwide” analysts have apparently called time on the rally in global equities citing the chronic imbalances between stocks and the real economy.
Sources close to the firm say that an unscheduled email to clients called into question the rationale of surging stock values when profits at many firms are the result of deep cost cutting rather than increasing revenues. They added that there is only so much that can be done with cost-cutting and that, eventually, investors will begin looking for increasing revenues commensurate with market optimism.
The “Sun Worldwide” sources suggest that large gains in the stocks of companies that rely upon the consumer cannot be justified when clear evidence shows that consumers remain reluctant to spend. The specter of unemployment remains despite evidence suggesting the pace of job losses is slowing.
One of the sources said the firm is of the opinion that unprecedented levels of cheap money from the world’s central banks have been channeled into equity, bond and commodities’
“Sun Worldwide” is rumored to have advised its clients to exercise extreme caution and to avoid buying stocks at elevated levels when a correction seems inevitable.
Photo:
http://www.prlog.org/
