- For the first time since 1997 fewer than 29% of ratings for stocks covered by brokerages worldwide are "buys", according to 159,919 recommendations compiled by Bloomberg.
- This flies in the face of strong cooperate earnings, recently announced in the Q2 earnings season
- the reason for this is because investors are becoming increasingly concerned with the global economic outlook, which as recent economic data suggest is looking "unusually uncertain" to quote Ben Bernanke chairman of Federal Reserve.
- This kind of sentiment is summed up perfectly by Paul Zemsky, head of IG Investment Management who says "Boy theses companies look pretty good, earnings look OK, they have plenty of cash. What if there is a double-dip"
- Also the recent announcement by Intel saying that Q3 earnings will be lower than previous estimates only adds to investor fears.
- Additionally the report also shows that 54% of ratings for companies in the US, UK, Japan & Brazil are holds, clearly demonstrating a market that currently lacks conviction
- This case is highlighted further when investors today (Mon 30th August) gave back most of the gains that were accumulated on Friday - a "sell the rally" approach that seems to dominating the market of late.
Main Article at http://noir.bloomberg.com/apps/news?pid=20601109&sid=aJJjeB34wnHs&pos=10