Global stocks were mixed on Wednesday as investors became more cautious a day before the bank stress test results after reports that Bank of America may need to raise a substantial amount of capital. Experts tell CNBC they don't see the rally lasting much longer and urge investors to take profits now.
Avoid US Treasurys
Stay way from U.S. Treasurys, says Kirby Daley, senior strategist at the Newedge Group, as measures taken by the Obama administration are inflationary.
Take Profits on Cyclicals
Investors should not be buying cyclicals now. But if you hold cyclicals, take profits, suggests Kevin Scully, executive chairman at NRA Capital.
Get Ready, Rally May Be Ending Soon
Get ready to put the risk aversion trade, advises Kirby Daley, senior strategist at the Newedge Group. But he would not touch the dollar. He reveals where he is putting his money instead, in this installment of "Protect Your Wealth".
Take Profits in Equities Now
The economic realities of rising unemployment and lower earnings will fuel a market selloff, says Kirby Daley, senior strategist at the Newedge Group. Gary Shilling, president at A. Gary Shilling & Co. also expects a sharp correction.
Global Recovery a Long Way Away
If you are betting on a sustained and robust recovery in the global economy or in the U.S. economy, you better think twice, warns Kirby Daley, senior strategist at the Newedge Group.
World at Risk of Stagflation
The most likely scenario for the global economy over the next few years is stagflation, warns Andy Xie, independent economist.
Unwise to Adopt Protectionist Measures
Now is the worst possible time to adopt protectionist measures. Carlos Gutierrez, former secretary of the U.S. Department of Commerce under the George W. Bush administration from 2005-2009, explains why it is vital to keep trade links open.
Obama's Tax Changes Are the 'Last Thing We Need'
Obama's proposal to increase taxes on firms and businesses is the last thing we need, says Carlos Gutierrez, former secretary of the U.S. Department of Commerce under the George W. Bush administration from 2005-2009.
Stress Tests Not a Barometer of Banks' Health
Gary Shilling, president at A. Gary Shilling & Co. and Kirby Daley, senior strategist at the Newedge Group, call the U.S. banks' stress tests a charade, as they do not help fix the banks' bad assets.