What the Pros Say: S&P Will Fall to 765
The economic turmoil is continuing to batter stock prices globally, but 2009 could start to peak investors' interest with the extremely oversold levels, one analyst told CNBC Tuesday. Below is a round up of what analysts and investment professionals think about the markets.
S&P to Fall to 765 in 12 Months: Strategist
The S&P 500 will fall to 765 points over the next 12 months, which is the 2003 low, Christian Blaabjerg, market strategist from Saxo Bank told CNBC.
The global economy will have to show evidence of recovery before the markets can rebound, he added.
2009 Offers Good Buying Opportunities
Wait for extremely oversold levels in 2009 before investing, until then, edge in cautiously as trade is very volatile, advises Ron Napier, head of Napier Investment Advisors.
From Russia with Value?
Russian stocks have shed more than $1 trillion since May 2008, with the RTS Index down over 75 percent in the last 6 months as investors flee the market. Kingsmill Bond, chief strategist at Troika Dialog, thinks we are either at a bottom or near a bottom for Russian markets.
"Book value in and of itself is understated by possibly up to a factor of 2. So therefore ones getting greater amounts of assets for one's money," Bond told CNBC.
Bond went on to say that the Russian market is largely dependent on global economic growth and oil, as that as long as both decline, the Russian market is unlikely to recover anytime soon.
Platinum Prices Need to Rise
The long-term outlook for platinum prices is "actually quite healthy". It's the shorter term that's going to be challenging, Lonmin CEO Ian Farmer told CNBC. To induce new investment in the industry you need a long-term price beyond $1,300, Farmer added.
Short Equities, Long Fixed Income
In today's volatile environment, Steen Jakobsen, chief investment officer at Saxo Bank is shorting equities and commodities but going long on the U.S. dollar and fixed income investments. He explains his strategy to CNBC.
Dollar, Yen to Gain from Deleveraging
Deleveraging remains the main driver in the forex markets, says John Kyriakopoulos, head of currency strategy at NAB Capital, and that will continue to benefit the yen and the dollar.
Seeking Safety in Yen
The recent crash in credit markets and the yen's rise have prompted Japan's retail investors to return to the safety of keeping their savings in banks, says Ron Napier, head of Napier Investment Advisors.
Underweight Equities, Overweight Cash
Daphne Roth, Asia head of equity research at ABN Amro Private Banking, explains why she is underweight equities and overweight cash in today's market environment.
Be Selective on Bonds
While the debt market has become more popular, Daphne Roth, Asia head of equity ABN Amro Private Banking cautions investors to be more selective on which ones they select. She also explains why she is overweight on cash and underweight gold.
More Downside for US and Austrailan Dollar
More downside risks lie ahead for the greenback and Aussie dollar notes, Callum Henderson, head of FX strategy at Standard Chartered.
2009 will be a Lost Year
Late 2010 will the earliest possible date for an economic rebound, says Ron Napier, head of Napier Investment Advisors. He finds that valuations have become attractive but as he tells CNBC's Martin Soong and Sri Jegarajah, cash is king.
Europe Faces 'L-Shaped' Recession
Steen Jakobsen, chief investment officer at Saxo Bank paints a grim picture for the European economy, saying it faces an "L-shaped" recession -- where the economy goes down and stays down for a long time.
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