A MAJOR SHIFT

Intressant att Bill-Gross tycker oxå att equities blir mer och mer attraktiva för utländska placerare,detta är i själva verket en bullish case för equity marknaden.

But the race is on to be like Yale and Harvard now. And that to us suggests that purchases of safe, low-yielding assets?U.S. Treasuries, German bunds and other bonds?are likely to decline and flows into commodities and companies and equity-like types of investments will likely increase. We?re not talking about a major overnight shift but at the margin.

an example being China now investing $3 billion in Blackstone, a private equity firm?we have to factor that into our equation in terms of the attractiveness of bonds.

Morgan Stanley, the American investment bank, urged clients to slash exposure to the stock market this week after it said its three key warning indicators had begun flashing a 'full house' signal for the first time since the dotcom bubble burst, costing investors huge sums.

It said such warnings had emerged from its analysis only five times since 1980 - and that a basket of 600 British and Continental European shares it tracked had fallen by an average of more than 15 per cent in the six-month period after each warning.

Men många håller inte med...

mer att läsa här

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/09/cmfund09.xml

" When your hairdresser starts giving you stock tips, get out quick and wait..." mvh SPX 970

the global economic backdrop, with recent confirmations that the US may have established a trough in 1Q, is so positive that we feel that there can be no better time to be positive on risky assets than now.

June 08, 2007

By Stephen Jen & Luca Bindelli | London June 08, 2007
Morgan Stanley

Greenspan, Gross Differ, Add to Treasury Volatility

``They can't both be right,'' said Brian Hilliard, chief economist at Societe Generale in London. ``You can't afford not to take their argument seriously. Greenspan has the status of a supremely successful central bank governor. Bill Gross has an amazing reputation as a very successful'' bond fund manager.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a1Dn1W_HiWH4&refer=home

" When your hairdresser starts giving you stock tips, get out quick and wait..." mvh SPX 970

If Bonds Hit Bad Patch, Must Stocks Also Suffer?

The last 15 years, according to my Bloomberg, the yield on the 10-year Treasury has risen by more than 10 percent four times. In three of those four years, the Standard & Poor's 500 Index of stocks posted gains averaging better than 20 percent.

A textbook case came in 1999, when the 10-year note's yield climbed 39 percent, to 6.4 percent from 4.6 percent. The S&P 500 ran up a 20 percent gain anyway as stocks neared the peak of a great bull market.

http://www.bloomberg.com/apps/news?pid=20601039&sid=avZuivzxHHzc&refer=home


" When your hairdresser starts giving you stock tips, get out quick and wait..." mvh SPX 970