Tuesday, April 27, 2010

Strategist Daley: Stocks May Plunge 40 Percent

Stocks may soon suffer a plunge, because the economic rebound stems from massive government stimulus that is unsustainable, says Kirby Daley, strategist at Newedge Group.

"Right now we're enjoying the confluence of the implementation of massive stimulus, massive monetary stimulus as well as fiscal, around the world," he says.

"I don't believe we have 30 percent upside from here, I certainly believe we are at risk of 30 to 40 percent downside."

Many investors are enthusiastic over the global rebound from recession, including a 5.6 percent expansion in the United States during the fourth quarter. (more)

No comments:

Post a Comment