Global stocks ended the week in the red, near 6-year lows, as pessimism over the economy and banking sector set in, scaring investors away from stocks and back into bonds and gold.
Experts interviewed by CNBC see markets reaching lower levels in the near term.
Markets May Test Lower Levels
Markets have seen the bulk of the downturn but we may still see some lower levels, warns Kirk West, managing director, Asia at Principal Global Investors. He sheds light on how he is investing in this environment.
S&P’s Bargain Basement at 750
“The floor of about 750 points for the S&P 500 ... represents the bargain basement level at which investors should be prepared to buy," James Bevan from CCLA Investment Management told CNBC.
Economic Recovery at Backend of 2010
The Bank of England's "vase-shaped economic recovery" referred to in its inflation report is too optimistic for Chris White from Threadneedle. The economic backdrop is appalling and not getting any better, he added. He sees a recovery in the backend of 2010.
Stimulus Plans Delay the Inevitable
Supporting inefficient auto companies, intervening in the mortgage market and propping up banks simply delays the inevitable, says Daniel Frishberg, chief investment strategist of lafferfrishberg.com. He tells CNBC that the Obama administration is making a mistake by not letting market forces play out.
US Stimulus Plan Will Help Economy
The U.S. stimulus measures will help lift the economy out of recession, believes Ethan Harris, co-head of U.S. economics research at Barclays Capital. He speaks to CNBC about the long-term issues to deal with to recover the economy.
Second Wave of Bad News from European Banks?
There might be a second wave of bad news from the European banks in the later part of this year, warns James Shugg, senior economist at Westpac Bank.
China is On the Right Track
China is currently the only Asian economy that is doing the right thing by seriously stimulating domestic demand, says Uwe Parpart, chief economist & strategist, Asia at Cantor Fitzgerald.
US Loses Its Bargaining Chip Against China
The U.S. will face difficulty on the international scene in its effort to push China into a corner to make concessions on the exchange rate front or some other trade fronts, says Jan Friederich, senior economist at Economist Intelligence Unit.