New highs in emerging markets and in high yield bonds are out of the
question, and if it happened in the S&P, which I don't believe, it
would be driven by very few stocks. Longer term, the market is far from
oversold. It still has considerable downside risk everywhere," he said.
"The
economy will weaken and not strengthen globally because if you look at
where the growth came from over the last 10 years, it came almost 80%
from emerging economies. These are not growing now and corporate profits
will come under pressure, and that will have an impact on Western
European companies and U.S. multinationals," he added.
"I don't see any buying opportunity from a longer-term perspective yet. Short term some of them are very oversold because - in msn money
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