London, United Kingdom (PressExposure) October 15, 2009 -- "Zen International" sources say that the rate of increase in equity values appears to be slowing and that the unprecedented rally may be running out of steam.
The Asian-based investment brokerage is thought to believe that many investors are remaining in cash in anticipation of the sharp pullback in equity values. Usually, such investor behavior leads to US Dollar strength but speculation is rife that the US government is pursuing a policy of benign neglect and, as such, they are reluctant to hold the greenback.
Sources close to "Zen International" say the firm's analysts sympathize with the sentiment and are expecting a significant pullback in equity values during the course of the next two weeks. The firm also believes that the absence of clear leadership from the United States will continue to send the prices of hard assets like precious metals and crude oil higher in the interim.
Many of the world's largest corporates are in the throes of releasing third-quarter earnings reports. Several of these reports have already confirmed general consensus that profits are being driven by cost-cutting rather than increases in revenue.
"Zen International" believes that this trend is set to continue until well into the second quarter of 2010. The firm also believes that third-quarter reports from the largest corporates and several global banks may prove to be the turning point for equity values and are keeping a close eye on the markets.