Worldwide Financial – “Sun Worldwide” – Equities Correction Will Come…

May 6, 2010 - PRLog -- “Sun Worldwide” has reiterated its view that the persistent rally in equity values remains largely disconnected from the general outlook for the economies of several developed nations and has warned its clients to avoid following the herd into markets that it feels are at or near the top of their price ranges.

One of the “Sun Worldwide” analysts said that investors must bear in mind that much of the economic growth in the US and other developed nations has occurred as a result of the massive stimulus measures, public spending and ultra-loose monetary policy pursued by governments and central banks.

The analysts added that the Greek debt crisis had drawn attention to the fact that the cheap money era was coming to an end and it was only a matter of time before the governments turned off the faucet.

“Sun Worldwide” believes that once monetary policy begins to tighten, equity values will plunge regardless of whether or not economies are seen as able to grow without the support of government.

The Greek crisis is seen as a timely reminder to nations that they cannot continue to borrow money indefinitely while ignoring soaring budget deficits.