don't be in too much of a hurry, because it might be that this is correct ...
'In a bid to identify potential bubbles', explains Global Strategist Ajay Kapur, 'we have constructed a series of bubble models using empirical analysis of bubbles in equity and commodity markets over the last 300 years... finding, purely from an empirical standpoint, few signs of bubbles around... none at the market level in developed countries, nor in the small caps space in the US... elsewhere, certain
Asian markets look bubbly from a price momentum perspective (India, Indonesia and South Korea), but valuations make the story a bit more ambiguous... similarly, the US Energy sector also looks a little bubbly though valuations appear okay... whilst in the commodity markets, just based on price action alone in the last 3 years, Coffee (+211%), Copper (+196%), Lead (+193%), Nickel (+255%) and Zinc (+250%), all look to be
in frothy territory'. citigroupgeo.com
'We are making meaningful adjustments to our industry group
weightings', announces US Strategist Levkovich, 'including: (1) upgrading Retailing and Semiconductor & Semi Equipment to overweight from market weight...
(2) downgrading Food & Staples Retailing as well as Pharmaceuticals & Biotech to market weight from overweight... and, (3) trimming back our market weight position on Household & Personal Products to underweight... shifts that now make us overweight: Media, Retailing, Tech Hardware & Equipment, Software & Services, Semis, and Telecommunications Services... vs underweight: Food Beverage & Tobacco, Capital Goods, Materials, Insurance, Real Estate and Utilities... reflecting this in the Citigroup Recommended List, we remove: McDonalds, Honeywell, Johnson & Johnson and Wyeth... and add Intel, Office Depot and General Electric'. citigroupgeo.com
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