New York, NY (PressExposure) September 12, 2009 -- "Mann International" sources say that despite the massive stimulus packages, bailouts and quantitative easing programs, investors have realized that economic recovery in the developed nations is likely to be anything but V-shaped.
The rally in equities appears to have run its course and investors are now taking money off the table and heading for the "safety" of the dollar.
Analysts at "Mann International" are advising their clients to be prepared for sharp falls in key stock market indices reasoning that these pullbacks will present excellent opportunities to acquire stocks cheaply.
The flight to safety began after the DJIA and the S&P500 failed to hold technical levels and coincided with renewed concerns about the strength of the financial sector which many commentators suggest has "gotten ahead of itself".
One of the "Mann International" sources opined that the banks will soon have to deal with large losses arising from commercial mortgage backed securities (CMBS). These are similar to the residential mortgage backed securities that almost caused the collapse of the global financial system a year ago. While it is unlikely that these CMBSs will have as profound an effect on the real economy as did the residential variants, they will still cause significant problems for an already beleaguered financial sector.
Nevertheless, "Mann International" analysts believe that there is a distinct possibility of further regional and commercial bank collapses and this could shake confidence in the fragile recovery.