The US economy is still dependant on government money and the recovery will not be sustainable until private companies are willing to spend more, Richard Cookson, global head of asset allocation at HSBC, told CNBC Thursday.
"I actually increased my 'underweight' on developed stocks at the beginning of this month," Cookson said, as Asian shares closed down and European shares drifted lower. "The question is not why people are bearish at the moment. The question is why they were so bullish before?"
Cookson remains bearish on the outlook for the U.S. economy, explaining that he is concerned about what happens once the government withdraws its stimulus measures.