Tuesday, October 27, 2009

Morgan Stanley: This Rally Almost Over

According to Morgan Stanley euro analyst Teun Draaisma, we've got just a little bit more rally left, and then a long, low multi-year grind as moneys starts to get tight.

The tightening phase may start in the next quarter or two, Draaisma observes.

“We believe investors need increasingly to consider the implications of monetary and fiscal stimulus withdrawal,” he says.

“We expect the first Fed rate hike in mid-2010, but the tightening turning point could come sooner, for instance through higher oil.” (more)

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