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Continue to Sell Into Rallies: Morgan's Roach

Tuesday, 21 Oct 2008 | 4:13 AM ET

Investors should be very cautious about jumping back into stocks considering the global economic turmoil and how much it will take to turn things around, Morgan Stanley Asia Chairman Stephen Roach told CNBC Tuesday.

"We just can't lose sight of where we've been over the last month and what are the forces that have taken us to this very difficult place for the markets and the world and how difficult it is going to be to work our way out of this in any expeditious fashion," Roach said.

Roach: Continue to Sell Into Rallies
Last night's rally on Wall Street is not the beginning of a bull market but just another bear market rally, believes Stephen Roach, chairman, Asia at Morgan Stanley. He tells CNBC's Martin Soong & Sri Jegarajah that investors should continue to sell into rallies.

"This is a bear-market rally that should provide some opportunity for selling along the way," he said.

Despite investor enthusiasm for the "son of stimulus" plan in the U.S., "it will take more than that to jump-start the world's largest economy," he warned.

And while many are noting that times of value destruction provide opportunities to buy quality companies, "not too many people have the pockets, nor the luxury of the long-term perspective of a Warren Buffett," Roach said.

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