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Pros Say: Don't Buy into the Recovery Mirage

CNBC.com
Monday, 8 Jun 2009 | 8:00 AM ET

Banks sold off on Monday, along with global stocks, as the dollar strengthened after Friday's better-than-expected U.S. jobs report for May. Experts tell CNBC that the recovery in the financial markets is just an illusion and won't last long.

Recovery in Financial Markets is Just a Mirage

The real economy is likely to force the financial markets back on their knees, believes David Roche, global strategist at Independent Strategy Limited.

Growing Focus on Asia

There has been a spike in U.S. corporate activity in Asia as the economies in the U.S. and Europe languish, observes Franklin Lavin, former White House political director.

The Case for Asian ETFs

Asia is going to be a major growth area in the EFT world, which is expected to be worth up to $2 trillion globally by 2011, Deborah Fuhr, global head of ETF research & implementation strategy at Barclays Global Investors said.

The Rise of 'ShangKong'

Given the strengths of Shanghai and Hong Kong, the two rivals could forge a partnership and evolve into the world's top financial centres, says Victor Chu, chairman at First Eastern Investment Group. He discusses with CNBC the possibility of the rise of "ShangKong".

Is China's Economic Growth Sustainable?

China's domestic economy does appear to be relatively strong, notes Ian McGuinn, director of research at JL McGregor & Co. But David Roche, global strategist at Independent Strategy Limited cautions that Beijing can't prop up the whole economy through credit.

Bull Market Back by August

Stocks will trade sideways or lower over the next 1-to-2 months, but the next leg of the bull market will return by August, Bob Parker from Credit Suisse told CNBC.

Rally Could Break Bear Market

This will probably be the rally that "breaks the back of the bear market," but it won't bring a strong economic recovery, James Barty from Arrowgrass Capital Partners told CNBC.

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