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<TR>Oct 25, 2008
</TR><!-- headline one : start --><TR>Markets heading for rebound? <!--10 min-->
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LONDON - STOCK prices have been hit so hard in recent months that the markets could soon see a rebound, a leading analyst said.
Mr Albert Edwards, chief strategist at Societe Generale Cross Asset Research in London, said in a note this week: 'We now have the technical conditions for a decent bear market rally.'
Mr Edwards, who predicted the extent of the current problems some months ago, said that markets move in 'waves', adding: 'In bear markets, huge lurches down are often followed by significant rallies.'
For this reason, some investors are now finding 'a lot more stocks worth buying', he said.
'It is in the area of valuation where the recent market slump allows us to be strategically somewhat less bearish,' he added.
He said that, while equities could be seen as cheap in Europe, that was still not true in the United States.
Mr Edwards also highlighted a growing acceptance that even China, which reported this week its economic growth had fallen to nine percent in the third quarter, its lowest for over five years, 'could be headed into recession'. 'There is much more acceptance of how bad things are getting in the global economy,' he said. 'I see talk of deep recession cropping up more regularly.' -- AFP
</TR>
<TR>Oct 25, 2008
</TR><!-- headline one : start --><TR>Markets heading for rebound? <!--10 min-->
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->
LONDON - STOCK prices have been hit so hard in recent months that the markets could soon see a rebound, a leading analyst said.
Mr Albert Edwards, chief strategist at Societe Generale Cross Asset Research in London, said in a note this week: 'We now have the technical conditions for a decent bear market rally.'
Mr Edwards, who predicted the extent of the current problems some months ago, said that markets move in 'waves', adding: 'In bear markets, huge lurches down are often followed by significant rallies.'
For this reason, some investors are now finding 'a lot more stocks worth buying', he said.
'It is in the area of valuation where the recent market slump allows us to be strategically somewhat less bearish,' he added.
He said that, while equities could be seen as cheap in Europe, that was still not true in the United States.
Mr Edwards also highlighted a growing acceptance that even China, which reported this week its economic growth had fallen to nine percent in the third quarter, its lowest for over five years, 'could be headed into recession'. 'There is much more acceptance of how bad things are getting in the global economy,' he said. 'I see talk of deep recession cropping up more regularly.' -- AFP
