“The five-year rally in emerging markets is looking increasingly mature, but the bull is not done yet.”
Citigroup’s favorite emerging markets are Israel, Egypt, and Russia. “The bull is not done yet. Rising valuations, fund inflows, large-cap stock leadership and increasing equity issuance are all evidence that the five-year rally in emerging markets is looking increasingly mature, but the bull is not done yet.”
Citigroup is also bullish on the US domestic stock market for the next six to nine months, but is worried about “late 2008 and into 2009, especially given that corporate margins and profits could come under pressure in the back half of next year.”
Citigroup is wary of Europe, noting “‘Panic on the streets’ caused by a run on a UK bank raises the specter of a loss of consumer confidence, at the same time economic growth is already easing.” The bank also warns that this is not the time to buy Japanese stocks.
Published by Globes [online], Israel business news - www.globes.co.il - on October 7, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007