2010 VIEWS

Source: Albert Edwards

Complacency can be the name of the game. It seems that Investors have forgotten everything that had happened since 2007. Since March 2009 we have enjoyed a stock market rally based in the heavy hand of government intervention and stimulus but investors doesn´t care… Today´s  bullishness is dangerous…

2010 can be a disappointing and tumultuous year. The credit collapse and the accompanying deflation and overcapacity are going to drive the economy and financial markets in 2010. This recession is quite different from  the recessions post WWII experience because it is NOT an inventory cycle problem . It is a credit contraction related to households and small businesses  that will take a LONG time to heal…

So we recommend prudence and patience for the year that comes, that BTW is the YEAR of the TIGER ( Chinese horoscope ).