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“Smart Trade Group” – TraderChat – (Stock Market Correction Due)…
Added: (Tue Jun 30 2009)
‘Smart Trade Group’: Equity markets have gotten carried away with the green shoot illusion.
“Smart Trade Group”, the Asian-based broker, reportedly believes that equity markets will be markedly lower by the end of the 3rd quarter of 2009.
They cite the gradual reversal of sentiment towards the green shoot theory that has been a major contributor to increasing confidence in the recovery of the global economy.
This, a source close to “Smart Trade Group” suggested, could see equity markets re-test the lows set last year following the collapse of Lehman Brothers.
Although the stock market is widely believed to be “forward-looking”, the consensus among many observers is that they have been looking too far forward especially as the real economy is still dealing with the fall-out of the credit crisis. Unemployment levels are still increasing and consumers remain unable to gain access to the credit that is more or less the lifeblood of economies that rely upon consumerism for up to 70% of their GDP.
The “Smart Trade Group” source said that the firm is focusing on individual stocks rather than indices as a whole. It is bullish on oil service and exploration companies as well as traditional defensive stocks but remains bearish on retailers and homebuilders.