Tuesday, 8 September 2015

In uncertain environment, keep cash and be flexible

THE global investment outlook appears cloudy with reports coming in from different directions, pointing to the need for extreme vigilance and flexibility.

Of interest is a report in The Telegraph saying that Morgan Stanley has issued a “full house” buy alert on international stock markets for the first time since early 2009.

“The US investment bank said that all five of its market-timing signals are now flashing a buy signal as selling-fever reaches capitulation levels.

“This is a rare occurrence, typically leading to a V-shaped recovery that delivers a 23% gain in stock prices over the following 12 months,’’ wrote Ambrose Evans-Pritchard in The Telegraph.

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