London, United Kingdom (PressExposure) April 23, 2010 -- Investor complacency is running at dangerously high levels given the threat that crises similar to that afflicting Greece are likely to affect other economies suggest analysts at "Zen International".
The analysts say they are concerned that, currently, there is a vogue for investors to pile back into equities after only a day of selling activity on equity markets regardless of the fact that the discounts they secure are insignificant.
"Zen International" warning clients to avoid being caught up in unsustainable market momentum citing the fact that the problems affecting Greece and, more importantly, the real solution for its ills will almost certainly be replicated in other economies. Responding to a request for clarity on what was meant by "the real solution", one "Zen International" analyst said that if Greece actually implements all the austerity measures it has promised, the country will almost certainly plunge into a long, deflationary recession which would exacerbate its already precarious situation because it would face a shortfall on the revenues it needs to service its debt and thereby increasing the risk of default.
"Zen International" said that other EU member nations including Spain, Portugal and Italy as well as the UK and, eventually, the United States, could very well find themselves in similar situations and urged investors to remember that stocks' rebound off the March 2009 lows was and continues to be nothing other than a bear market rally.