Are We At The End Of The Global Market Rally?
The end of month closes across asset classes could be the most important since March 2009, when a clear reversal pattern prompted us to turn bullish towards equities. This time, a weak close would suggest an end to the rally of the past 10 months, with the potential for some significant medium-term downside for equities and commodities alike. With US Q4 GDP data now out, Mark Schaltuper speaks to BMI’s Global Economist Tim Cooper about the outlook for global markets over the coming months.
February 6th, 2010 at 1:48 pm UTC
Excellent podcast. I absolutely agree that markets are at a tipping point, at least for the time being.
My questions:
1) How long are we in for a correction? Two months? Six months? All of 2010?
2) Will all assets classes be equally affected, across all regions (developed vs emerging markets)? Yes, AUDUSD will undoubtedly correct further, but what about currencies in countries, where interest rates will be raised fairly soon, such as the Indian rupee?
3) What would lead to a renewed, sustained recovery in the markets, especially US equity markets? What would trigger renewed USD weakness?
Thanks!