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The credit crisis may not be over yet, but we seem to be at an important juncture with governments around the globe attempting to address the root of the problem. One could argue that stock prices are oversold, creating the potential for a further advance through year-end, especially if credit spreads tighten (i.e. normalize) further. However, stock market valuations are not at the same oversold level as prices, arguing that a secular low may not necessarily have been reached. [...]
“Bounces along the way are inevitable, but for a true bottom to be put in place, some more work needs to be done to the downside,” said guest contributor Bennet Sedacca about the outlook for stock markets. The post includes a check-list of items that need to happen in order for him to turn bullish on equities. [...] | ||||||||||||||||||
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