Global Investing

Zeitgeist check

January 26, 2009

Some more bits and bobs to capture the current mood among investors:

– Some stock indexes have started to fall below their 2008 lows, meaning the turn-of-the-year rally has petered out. Dead cat bounce?

– Analysts are becoming increasingly downbeat about corporate earnings. Seven of the 10 sectors in the S&P 500 are looking at a year-on-year decline in earnings, according to Thomson Reuters proprietary research. That’s the highest number of sectors in negative territory¬†since Q4 2001.

– UBS economists have sharply revised down estimates for 2009 growth in Japan, China, much of the rest of Asia, and the euro zone. They now expect world GDP to grow a paltry 0.4 percent this year.

– Politicians are getting more irate about bankers. Franz Muentefering, head of Germany’s Social Democrats, says: “Most (of them) are hard working and responsible. But there are also louts, pyromaniacs and gangsters.”

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