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Pros Say: Don’t Bet on Economy Just Yet

CNBC.com
Thursday, 9 Apr 2009 | 5:28 AM ET

Global stocks rose Thursday, ahead of the long Easter weekend, as governments and central banks take concerted efforts to restore economic growth.

Japan announced a bigger-than-expected stimulus package of $154 billion, and the Bank of Korea kept rates on hold at 2 percent. The Bank of England is expected to announce a decision on interest rates later in the day.

Experts tell CNBC investors should remain cautious as it is premature to expect a global economic recovery.

Premature to Expect Global Recovery

Karl Eggerss, chief trader at LafferFrishberg.com says an investor does not want to miss out on the huge market rally, but do have an exit strategy as the economy is not out of the woods yet.

Be Careful After Recent Rally

Karl Eggerss, chief trader at LafferFrishberg.com says equities may retest lows and correct sharply, as investors seem to have priced in an economic recovery without strong evidence of an improvement.

New Money Is Entering the Markets

Despite expectations of more weak economic data, Todd Everts, CEO at Wall Street Global notes that new money is entering the markets without the use of leverage.

Regulations to Target Short-Selling

Harvey Pitt, chief executive officer at Kalorama Partners and a former SEC chairman, says the Securities and Exchange Commission's proposals on short-selling mark efforts to discourage abusive short-trading as a result of rules implemented in 2004.

Reflation Trade with a Twist

Michael Kurtz, head of China research & China strategist at Macquarie Research is getting back into the reflation theme but there is a defensive twist to it as well.

Euro Still Vulnerable

The euro still looks vulnerable, says Stephen Halmarick, head investment market research at Colonial First State. He speaks to CNBC about the impact of rate cuts by the ECB on currencies.

Will the Yen Strengthen or Weaken?

The BoJ may intervene if the yen strengthens to 95 or below against the dollar, believes Thio Chin Loo, senior currency strategist at BNP Paribas. She gives her take on the yen's direction.

Are EMs Showing Signs of Decoupling?

The decoupling theme is likely to make a comeback in the emerging markets, says HSBC's senior Asian economist Frederic Neumann.

RBA May Slash Rates to 2% in Near Term

Rates in Australia may fall to 2% if economic data does not improve in the near term, predicts Thio Chin Loo, senior currency strategist at BNP Paribas.

Contact Europe: Economy

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