Analysts have cut profit estimates for 48 percent of stocks they cover worldwide, the most in at least 15 years, and more downgrades are likely as the economy slows, JPMorgan Chase & Co. said.
According to the publicly expressed opinions, the US shares are yet overvalued compared to investor’s expectations, which might mean that a further tumbling could be expected in the near future.
Dow Jones has landed today at levels of around 8,000, much less than even in September, when it was at around 9,000. It has suffered already the longest and the deepest decrease ever in one month, with component companies being under scrutiny for their viability.
Furthermore, Bloomberg calculated that its MSCI World Index tumbled 19 percent in October, its worst monthly performance ever, following a 12 percent decline in September. The main cause this month is also the dramatic decrease in the Asian stocks. Nikkei has lost today 7,4%, led by disappointing Toyota and Nintendo sales, but also by the majority of Japan’s keiretsu (holdings), which suffer a global decrease in their sales. Oils has also fallen under a new psychological level of $50/barrel, triggered by the announcements of the OPEC members of the reserves increase.
In other words, we at doitinvest.com see lots of pressures on the supply side versus a very weak demand. Recession is already here…