- AIG, Symbol of Wall St. Crisis, Sees Its Stock Zoom Back
- US Debating What to Do With Billions of TARP Money Left
- US Starts Fiscal 2010 With $176 Billion Gap for October
- Disney CFO and Parks Chief to Swap Roles
- Housing Recovery 'In Uncharted Territory': HUD Chief
- For Video Game Makers, Stakes Are High for Holidays
- In Charity Tax Filing, a Real Glimpse of Goldman Sachs
- 30-Year Mortgage Rate Falls Again; Lowest in Five Weeks
- Debit Card Overdraft Fees Partially Banned by Fed
- Disney's CFO-Theme Park Chairman Executive Swap
- Road Rage Rants
- Housing Recovery 'Still In Uncharted Territory': HUD Secretary
- S&P Stocks Trading at New 52-Week Highs
- Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia Business Students
- Big Bounce Coming — Play These 6 Stocks: Chief Investor
- Wal-Mart Looks Even Better Next Quarter: Strategist
- Fourteen Stocks that Could Gain from Dollar's Decline
- Busch: Another Obama Opportunity
MOST SHARED
- Meet The Leaders of the New Retail Revolution
- Obama Plans Jobs Summit But Not Second Stimulus
- A Public Hearing That Isn't Public
- Jobless Claims Post Another Drop as Picture Improves
- "Friending" Big Pharma
- Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia Business Students
- For Video Game Makers, Stakes Are High for The Holidays
- Activision Says 'Call of Duty' Sets Launch Record
- Despite Rhetoric, Obama Has Limited Options To Boost Jobs
Text Size 
The dollar's recent declines against the other major currencies are set to reach the final whistle and greenback sellers will have to retreat to the sidelines, David Darst, chief investment strategist of Morgan Stanley Global Wealth Management Group told CNBC Tuesday.
 |
"In a soccer match of 90 minutes, we think we are in the 80th minute of decline of the dollar against most of the major currencies," Darst said on "Worldwide Exchange."
But another sharp drop in financials would lead to further selling for the dollar if the Federal Reserve was forced into more interest rates cuts, Darst said.
In addition, Morgan Stanley believes there could be gains in store for some of the Asian currencies versus the dollar, he said.
'Long, Grinding Erosion'
Despite the bullish view on the dollar, Darst told CNBC that the current bear market is far from over and is now entering a painful third stage of "long grinding erosion, which takes several months."
Comparing the current market turmoil to previous bear-market periods, Darst said that there are significant falls for stock markets still to come over the second half of the year.
"For the market as a whole we have not seen that capitulatory, cathartic purging that often spells the very final bottom," Darst said.
With the tail end of the market slump yet to happen, Morgan Stanley Global Wealth Management Group is keeping its portfolio firmly defensive with a 4 percent allocation to commodities, 16 percent in cash and some inflation-protected securities, which adjust upward as inflation goes higher.
Print
Email
- CNBC is blogging a talk given by Warren Buffett and Bill Gates to students at Columbia University.
- US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
- They may have wrecked their company or saved our economy. Tell us what you think.
- A European dating site finds lovelorn singles from one country to be consistently uglier. Which is it?
- Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
- Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
Data is a real-time snapshot *Data is delayed at least 15 minutes