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Turnaround of the US Stocks Not Close?

djia-april-20091Well, at least this is how it looks when we at were reading the news. Most of the analysts named last weeks rally of the U.S. stocks, one of the longest in the last years, as a “dead cat bounce”. In other words, probably to reverse quite soon when the recession worries for this year will prevail again.
The MSCI World Index fell 0.7 percent to 826.66 as of 4:49 p.m. in Singapore, taking its losses this week to 3.3 percent. The decline ended a four-week, 23 percent rally that came amid optimism government efforts worldwide to revive the global economy will succeed. The gauge has lost 10 percent this year.
Most of the analysts complain that this looks like a bear market rally and the markets seemed to reflect this sentiment as the main indices are falling these days. The fundamentals of the traded stocks do not seem to improve, meaning that the analysts are expecting that the quarter 1 earnings reports are not great. The average analyst estimations in the last 12 months for most of the companies included in the major indexes were decreased by 44%, which is a large and unexpected decrease.

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