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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (34713)	5/13/2008 11:43:19 AM
From: Rolla Coasta	Respond to of 217906

Dow 25,000 by 2011 (Boom! it is possible) youtube.com

To: Elroy Jetson who wrote (34713)	5/13/2008 3:56:08 PM
From: elmatador	Respond to of 217906

USD being talked up. Soothing the sub-prime crisis. Telling the bottom has been reached. Pretty soon people will be talking about a rally. Well, people love the good old days don't they. Emerging market equities By Jonathan Garner Published: May 13 2008 13:24 \| Last updated: May 13 2008 13:24 It is time to take profits on emerging market equities following a 12 per cent gain since the end of January, says Jonathan Garner, analyst at Morgan Stanley. He continues to believe in a core thesis of EM economic and stock market decoupling, but says the near-term risk/reward trade-off for EM equities has deteriorated. Firstly, Mr Garner says, the economic situation in the US and Europe continues to darken, threatening a bout of contagion in the short term. He adds that inflationary pressures within the largest EM countries are proving slower to abate than hoped, introducing more policy rate risk. EM equity valuations have returned close to long-term averages – and the MSCI EM stock index has recently been trading within 5 per cent of Mr Garner’s year-end target of 1,250. Furthermore, he says, earnings revisions breadth has deteriorated, suggesting downside risk to consensus earnings per share growth expectations for 2008. Finally, the US dollar has been strengthening slightly, providing an opportunity to take profits in key EM currencies in Asia ex-Japan and elsewhere. “We are downgrading our stance on EM equities to 2 per cent overweight from 4 per cent overweight,” Mr Garner says. “We continue to advise focusing regionally in Asia on Korea and Taiwan, in Latin America on Brazil, and in Europe on Russia. At sector level, we prefer energy, materials, telecoms and selected industrials.” Copyright The Financial Times Limited 2008