New York, New York (PressExposure) March 09, 2010 -- "Mann International" analysts believe that Investors must remain mindful of the dichotomy that is rallying equities and a stronger US dollar and have suggested that of the two, equities are likely to suffer first.
The firm believes that the general lack of demand from consumers will eventually lead to the retrenchment of equity values with the possibility that prices will retest the lows of March 2009.
"Mann International" has made no secret of its misgivings about the fact that the US stock market appears to be insulated with cheap leverage. The firm believes that generating cheap dollars enables hedge funds to speculate and build leverage in many other asset classes. The presence of massive leverage means that falls and the resultant losses will be magnified.
"Mann International" sources suggest that leverage is still alive and well in the markets and cites impressive profits from the large banking corporations being generated by speculation in markets rather than from mergers and acquisitions.
One of the "Mann International" sources suggested that it would be prudent for the central banks to further scrutinize banking corporations to ensure that they are capable of withstanding a sharp correction in the inflated asset prices their policies have helped to create.
The firm has urged clients to remain cautious with regard to purchasing over-valued stocks and to wait for appropriate recommendations as usual.