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By the Opalesque Team: See last week’s 2009 outlook (9) here.
Nicholas-Applegate Capital Mgmt: Debt may recover before equities
Horaci Valeiras, CIO of the global equity fund house Nicholas-Applegate Capital Management, does not believe global economies will sink into depression in 2009. But it will be necessary to have credit markets function effectively.
He does not expect a big upward trend in equities without a positive catalyst from credit markets, and so believes that debt will recover before equities. Apart from the odd opportunities, EM remain expensive and investors have less appetite for them anyway.
Valeiras further predicts the US dollar will do well versus the euro but less so against the yen.
Killik & Co believes recovery is unlikely to be V-shaped
Jonathan Jackson, head of equities at Killik & Co, a London-based stock-broker, expects equities will attempt to defy the gloom by climbing the proverbial wall of fear. However, with a considerable mountain of debt to be worked out of the system, the recovery in both the economy and stock market is unlikely to be V-shaped.
Rather than embracing the rallies in 2009, investors are likely to treat any short-term stock market recovery with scepticism, fearing it is only a temporary respite from the long...................... To view our full article Click here
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