Since the Dow is below 10,000 (again) and obviously needs a little cheering up, Bloomberg – in lieu of sending flowers – goes in search of what’s less appetizing to own than US stocks, and finds a few things:
The U.S. has supplanted China and Brazil as the most attractive market for investors as confidence in the global economic recovery wanes in the wake of the Greek debt crisis.
Almost four of 10 respondents picked the U.S. as the market presenting the best opportunities in the year ahead. That’s more than double the portion who said so last October, when the U.S. was rated the market posing the greatest downside risk by a plurality of respondents.
USA! USA! USA! Now that’s the kind of sentiment that makes me want to take my little US flag out of my desk and wave it, except that I don’t have a little US flag or even a desk, so I’ll just go ahead and wave it on the inside for now. In case you’re wondering how the BRICs rounded out, Brazil, came in with 29 percent; China, 28 percent; and India, 27 percent; Russia came in last with 6 percent, and with such a minority of investors, that 6 percent will either be chugging vodka in the VIP area or be banished to Novosibirsk in a few years, we’ll see.
Even bond pimps like Bill Gross called the US the “least dirty shirt”, which coming from him is a downright ringing endorsement of stocks. Here’s how respondents weighed in on the various asset classes:
Bonds were chosen as the asset class likely to offer the worst returns, with 36 percent of respondents saying that. Real estate was rated next worst, chosen by 24 percent. Investors in Asia, where there are fears that China’s property market is overheated, were the most pessimistic about real estate, rating it the worst asset to hold.
Poll respondents by an almost 2-to-1 margin expect to increase rather than decrease holdings of stocks during the next six months. Investors are also bullish on crude oil prices, which usually rise along with economic activity. By a margin of 47 percent to 30 percent, respondents say they expect the price of gold, a traditional hedge against political and economic turmoil, to rise in six months. Fears of inflation are muted. Only a little more than a quarter consider it a major threat in “the next couple years.”
So US stocks, oil, and gold are set to rally and inflation is a non-issue! Where are your party hats, people?



Important Things « I'm Totally Serious, Bro // Jun 9, 2010 at 5:22 pm
[...] U.S. Stocks Kind Of Suck Right Now [LOLFed] [...]