Sunday, July 4, 2010
Biggs Sells Tech Stocks on Concern Economy to Worsen
This man was bullish during 2008 melt down. And he was right. He was still bullish beginning of this year. He, however, reduced his equity position by 30-40% mainly on the US stocks recently but he thinks emerging markets will do just fine.
He was concerned of potential policy mistake as a lot of governments have been hawkish in G20 meeting on their stance of fiscal policies.
Sentiment wise, I think it has reached quite an extreme point, as bearish as March 2009 before the reversal.
In my mind, the markets already have been trying to price in a double dipped recession already. I don't think we should get too bearish.