Pictet & Co: Almost another spectacular month for equities. The first half of November saw this year’s bull market back in full strength, only for it be abruptly halted when Dubai World stunned markets by asking its lenders to freeze its debt obligations. The incipient panic has since faded, but the episode has reminded investors that the dangers of excessive debt, which brought the global financial system to its knees last year, still lurk
While we think that the short-term risks of a more significant correction are growing, we remain relatively positive on equities.
Dubai debt drama spoils an otherwise good month for equity markets
In November, a healthy combination of rising earnings expectations, M&A activity and abundant liquidity provided a benign environment for most equity markets. Japan, amidst renewed fears that deflation was taking hold, was a notable exception. Read Full document (pdf)
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Banque Syz & Co. S.A.: Latest Research Report - December Market Outlook