Corporate foreign exchange news

Equities: Too far, too soon?

Tuesday, 11 August 2009 09:22:38 GMT

The flat performance in equities markets on Monday (August 10th) came as investors asked themselves whether stocks and shares have come too far too soon.
Speaking to the Financial Times, David Rosenberg, chief economist and strategist at Gluskin Sheff, said that the 50 per cent rise witnessed in the S&P500 since March is entirely unprecedented, adding that the rally has been driven by acutely tentative signs of recovery.
He warned: "This is the most speculative?momentum-driven equity market since the early 1930s."
Traders are also this morning taking stock of the news that Berkshire Hathaway, Warren Buffett's investment group, is moving out of stocks and into corporate bonds and foreign government bonds after posting its strongest quarterly results in two years on Sunday.
However, concerns that the market was moving ahead of itself were dampened in the first hour of trading on the London Stock Exchange, during which all indices listed on the bourse moved upwards.ADNFCR-2522-ID-19305971-ADNFCR
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