New York, New York (PressExposure) March 27, 2010 -- "Mann International" have reportedly told clients that they should remember that equity markets have morphed from fear to out-and-out complacency and that all the indicators - technical and otherwise - point to the conclusion that stocks are still in a bear market rally.
The comments, made in a scheduled newsletter, added that it was "almost inevitable" that global equity markets would correct in the short-term given the dearth of positive economic numbers emerging from developed economies.
A "Mann International" analyst pointed to indicators such as the VIX, which is hovering at or around recent lows, saying that this is an example of the complacent attitude which fails to take into account the huge global debts built up over the duration of the financial crisis.
"Mann International" conceded that it had expected the bear market rally to have reversed by now but said that the fact that it hadn't was no reason whatsoever to speculate that it wouldn't.
The analyst went on to say that the longer the rally lasted, the more likely it was that equities would retest the March 2009 lows. He added that it was folly for investors to think that true and sustainable recovery in developed economies could come about through the profligacy of government spending.