London, United Kingdom (PressExposure) December 08, 2009 -- Sources close to analysts at "Zen International" suggest the firm believes that worse than expected US non-farm payroll numbers may be the final straw for the bear market rally that has seen over a 60% gain in equity values since the March lows.
The Asian-based investment boutique has maintained its view that the rally in the stock market bears little correlation with the prevailing state of the real economy where many Americans are still losing their jobs and where consumer spending remains subdued.
"Zen International" apparently believe that although jitters which reverberated around the financial markets following news of Dubai's debt crisis and disappointing retail sales figures following the Black Friday kickoff to the holiday shopping season may not have been enough to prompt selloff in equity markets, a worse than expected jobs report could increase bearish sentiment sufficiently to derail the rally.
"Zen International" have recently advised clients to take profits on certain profitable trades and to hold cash with a view to opportunistic stock acquisition in the event of a major pullback.
Contrary to the opinion of many economists, "Zen International" does not share the view that the era of buy and hold is dead and, according to its analysts, such a view only applies if stocks are bought at overinflated values.