Posted on 02/10/2010 4:45:59 PM PST by blam
Barclays' Tim Bond: Equity Investors Are Dancing On The Edge Of A Volcano
The Pragmatic Capitalist
Feb. 10, 2010, 6:00 AM
Tim Bond of Barclays has been remarkably accurate in predicting the strength and length of the global equity rally. Despite the many signs of weakness over the last 9 months Bond has remained very optimistic (read his bullish note from 2009 here). He claimed that analyst estimates and high levels of bearishness would lay the foundation for a continuing equity rally.
“Never has a bull market climbed a steeper wall of worry. Despite a proliferation of positive economic indicators, the consensus remains resolutely gloomy. Bullish economists are still rarer than hens’ teeth. The average forecast for Q3 US GDP growth is an anaemic 0.8% increase, which would be by far the slowest first quarter of any recovery on record.”
He couldn’t have been much more accurate. The economic landscape is quickly changing, however, and Bond’s outlook is turning decidedly less optimistic. Bond now believes the problem of debt is becoming contagious in Europe and that higher bond yields will accompany the process
[snip]
(Excerpt) Read more at businessinsider.com ...
“proliferation of positive economic indicators’
His nose is growing.
Steal big..... make Zero your partner...involve Soros.
Not much upside potential in this market.
Puts on bonds should be a good place to be... And there is no shortage of companies with high cash burn rates to short that only have reserves for 1 or 2 quarters at best.
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