The tentative rally we have witnessed in equities in the first week of 2009 has all but disappeared. Dismal corporate and economic news continue to stream in unabated, battering investors' confidence as they brace for tough times ahead.
Christoffer Moltke-Leth, head of sales trading, Asia Pacific at Saxo Capital Markets, advises investors to tread with caution in such a market environment.
"We are right now in a very, very deep recession in most advanced economies, and it's a synchronized recession. I believe, for the first time since '82, we have recession in the U.S., Japan, the UK, and Europe," he said on CNBC Asia Pacific's "Protect Your Wealth" segment. "So we have a scenario where basically we have a recession and disinflation. And all historical evidence shows that this is very, very negative for stocks."