There has been so much selling that investor sentiment is close to turning around and we may witness an explosive rally, experts say. Portfolio managers are slowly moving from cash into stocks, but we may still not have seen the lows of the bear market, they added.
"We've seen widespread liquidation in all asset classes… because that was the unwinding of the carry trade. The liquidation phase is now coming to an end," said Puru Saxena, chief executive at Puru Saxena Wealth Management. "Investor sentiment is just so horrendous, I don't see who is left to sell."
Saxena, who in his research notes spoke of an "explosive" rally, said a reversal of the selling trend will start, as most of the bad news has been factored in or discounted. But we haven't necessarily seen the lows of this bear market, Saxena warned.
Back to Stocks
"I do think that there is a sort of rebound going on. I've seen a lot of portfolio managers now moving slowly from cash into equities," David Costa, Dean at Robert Kennedy College, told CNBC.
There are "screaming opportunities" in the Swiss market, where deeply discounted financial stocks abound, Costa added.
Bombay Sensex Due for a Rally
The Bombay Sensex is due for a rally once news of the terror attacks are priced in, chartist Aaron Smith, MD of Superfund Financial tells CNBC. He also looks at whether the weakening rupee is poised for a rebound.
Bear-Market Rally Still Running
The current "recovery rally" in stocks could push another 10 percent higher, but they are still in a bear market and any rally will be short-lived, Andreas Nigg from Vontobel told CNBC.