Eight-four pages of pen sucking from Barclays Capital’s head of research, Larry Kantor, on Wednesday. Some eye-catching headlines from the bank’s latest quarterly Economic and Financial Market Outlook:
Recent market rally likely reflects an inflexion point
Market lows reflected extreme pessimism, providing attractive entry points
We recommend continued exposure to IG credit – especially financials – and some renewed exposure to cyclical equities
Global recession starting to bottom out, with EM Asia leading the way
Massive inventory correction underway
For equities analysts are still holding their breath:
We still believe that earnings will bottom in 3Q and that the equity market will bottom prior to earnings. As such, we expect share prices to enjoy a sustainable rally later in the year. At present, however, we do not believe macroeconomic conditions and policy settings have stabilized sufficiently to create an environment conducive to such a rally. Still, we are hopeful that the intraday low of 667 will hold, given how close the market came to our valuation floor.
Hence the bear market is “probably” over.
Related links:
Bottom pickers at BarCap – Long Room