Equities Offer Value as Recovery Continues,
Barclays Capital Says
“Global Outlook” research forecast maintains a positive near-term view while cautioning on medium-
term obstacles to a bull market
June 25, 2010 10:25 AM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--Barclays Capital today said in its latest flagship quarterly research
publication, Global Outlook: Rebound, But No Raging Bull Market, that the recent market correction, while
exposing obstacles to a bull market in the medium term, has not derailed the global economic recovery. As such,
Barclays Capital is recommending that investors maintain selective exposure to risky assets, particularly equities in
Europe and the US.
“The recent market correction does not in itself pose a serious risk to the continuation of the economic expansion,”
said Larry Kantor, Head of Research at Barclays Capital. “We think markets will bounce back in the near term, but
medium-term issues revealed in the wake of this correction are likely to constrain how far the market rally can go.”
Among those issues, which may represent an obstacle to a sustained bull market, are a lack of investor confidence in
policy to restore financial market stability, concern over growing government debt and the long-term effects of
extreme monetary ease. Nevertheless, “We feel a sustainable global expansion has taken hold and see the market
setback as a correction that has restored value in many asset classes, rather than as a threat to economic recovery,”
said Kantor.
Major themes of Barclays Capital’s Global Outlook include:
l Recent market setback has not derailed the global economic recovery
l Sustained bull market may be hampered by investor concern about surging government debt and a lack of
confidence in policy to restore financial market stability
l Recommending European and US equities over investment-grade credit
l Extreme selling of European currencies has run its course, and the strength of USD and JPY unlikely to persist
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