Wednesday, Jun 06, 2007
Full House!
Daily Telegraph: Morgan Stanley issues triple sell warning on equities
Morgan Stanley has advised clients to slash exposure to the stock market after its three key warning indicators began flashing a "Full House" sell signal for the first time since the dotcom bust. Teun Draaisma, chief of European equities strategist for the US investment bank, said the triple warning was a "very powerful" signal that had been triggered just five times since 1980. Our model is forecasting a 14pc correction over the next six months, but it could be more serious," he said. Mr Draaisma said the MSCI index of 600 European and British equities had dropped by an average of 15.2pc over six months after each "Full House" signal, with falls of 25.2pc after September 1987 and 26.2pc after April 2002. "We prefer to be on the right side of these odds," he said.
1 Comment
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1. dohousescrashinthewoods said...
Flip me. I only sent the ISA switch yesterday - out of shares into government and corporate bonds.
I figured it was time to put some money where the mouth is. Just hope I'm not too late!