Pros Say: Rally Will Peter Out; Short Stocks, Dollar
Global stocks and the euro gained Monday as hopes that the economic downturn is nearing its bottom spurred demand for riskier assets. Experts tell CNBC they see long-term value in the euro and gold, while they see short-term value in the dollar and stocks.
Rowing the Boat the Wrong Way
David Roche, global strategist at Independent Strategy, says the market rally will peter out because the economy will not recover as anticipated. He tells CNBC that the government's move to borrow a lot of money on the Fed's balance sheet to keep yesterday's dream will simply not work.
Short Dollar, Long Euro
David Roche, global strategist at Independent Strategy is short on the USD and other currencies of countries that are exercising quantitative easing. He tells CNBC he is long on the euro because the ECB is unlikely to go down that route.
Short Stocks, Long Gold
In the short-term, stocks are the place to be, says Peter McGuire, managing director of Commodity Warrants Australia. He tells CNBC that the gold market will continue to rise over the long-term.
The Link Between Commodities & Currencies
If the dollar remains stable or rises from its current level, it will be tough to be bullish on gold, says Tetsuya Yoshii, VP for derivative products at Mizuho Corporate Bank. But David Roche, global strategist at Independent Strategy disagrees. They make their case.
Decent Global Growth Only in 2011
Decent global economic growth won't be seen till 2011, says David Roche, global strategist at Independent Strategy. He explains why road to recovery will be long and slow.
Shocking Earnings Expected
Stock markets have priced in a disastrous corporate results season with earnings expected to be cut by up to half, Thomas Kieselstein from Quoniam Asset Management told CNBC Monday.
Stock Rally Won’t Last
Institutional investors have returned to the stock market, but the recent rally won't be sustainable for long, Julian Pittam from Data Explorers told CNBC Monday.