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09-Mar-2009 22:04

Others / Bank of America BOA

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Republican senators say some big banks can fail Reports: McCain, Shelby say government should allow lenders to go under.

Last update: 4:29 p.m. EDT March 8, 2009Comments: 221SAN FRANCISCO -

Republican Senate leaders said Sunday the government should allow big banks to fail, according to published reports. "Close them down, get them out of business. If they're dead, they ought to be buried," Sen. Richard Shelby, R-Ala., said on ABC's "This Week" program, according to reports. "We bury the small banks. We've got to bury some big ones and send a strong message to the market," the top Republican on the banking committee reportedly said. Shelby didn't specify any banks, but when asked about Citigroup Inc. , he reportedly said the struggling financial giant has "always been a problem child." Senator John McCain, who lost the 2008 presidential race to President Obama, struck a similar note on "Fox News Sunday, according to news reports. "I don't think they made the hard decision and that is to let these banks fail," McCain reportedly said. The senator's remarks echoes those made Friday by the president of the Kansas City Federal Reserve Bank. In a speech in Omaha, Neb., Thomas Hoenig slammed the government's approach to weak banks as counterproductive and called for the government to move in, take over and clean house at insolvent institutions. See full story on Hoenig's remarks. The architects of the government response -- primarily Fed Chairman Ben Bernanke, former Treasury Secretary Henry Paulson and Paulson successor Timothy Geithner -- have argued that because there were no rules to take over big but weak bank-holding companies, they were forced to keep the institutions operating and pushing in government money to strengthen them. But as the cost of this approach keeps expanding beyond the initial $700 billion price tag, some fear that good money might be thrown after bad. Last Thursday, Citigroup became the first major banking company whose stock slid below $1 during the ongoing financial crisis, falling to 97 cents. "If institutions -- no matter what their size -- have lost market confidence and can't survive on their own, we must be willing to write down their losses, bring in capable management, sell off and reorganize misaligned activities and businesses and begin the process of restoring them to private ownership. "In fact, for failed institutions that have proven to be too big or too complex to manage well, steps must be take to break up their operations and sell them off in more manageable pieces," Hoenig said.

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30-Oct-2008 00:52

Others / Bailing out Lehman Minibond holders

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even our town councilrun by PAP elites also buy into lehman crap.. Only Hougang and Potong Pasir din invest into these junks. So if future, your area not upgraded, u know y.. lolz..

i wonder will the banks buy back from them??

Town councils’ sinking funds not substantially affected by financial turmoil

SINGAPORE : The sinking funds under all 14 PAP—managed town councils are safe and not significantly affected by the failed Lehman Brothers products.

Town councils said only a small percentage of their total investments were spent on those affected products.

Town councils use their individual sinking funds to carry works such as repairing damages at HDB (Housing & Development Board) common areas or maintaining an HDB elevator.

Every PAP town council has between S$30 million and S$150 million in their sinking funds.

Under current guidelines, each town council can use 65 per cent of their sinking funds to invest in government bonds, while up to 35 per cent can be invested in other financial instruments like corporate bonds and equities.

Although some of the town councils have purchased Lehman Brothers—linked products, the investments are minimal.

"Maybe a couple of percentage out of the total investment portfolio (were used in those investments), so the exposure will not affect the overall investment portfolio or the sinking funds per se. There’s definitely no fear that any of the PAP town councils’ sinking funds will be wiped out. All the supporting PAP town councils’ sinking funds are in safe hands," assured Dr Teo Ho Pin, Coordinating Chairman of the 14 PAP Town Councils. He is also the mayor of North West District.

For Jurong Town Council, it has not invested in any Lehman—linked products, but explains that it only spends about 18 per cent or S$15 million of its S$84 million sinking funds in slightly riskier products.

Even then, that investment guarantees the principal amount.

"The position that we’ve taken is really to be very cautious with our investments because we’re very clear that these are public funds, and therefore we decided to err on the side of being conservative in our investment policy. The public do not have to worry... there will not be enough funds in order to take care of their needs," said Jurong MP Halimah Yacob.

Many agree the current financial turmoil has taught the town councils that they should further diversify their investments in the future.

Going forward, town councils are expected to exercise even greater prudence when investing their sinking funds. But it’s hoped that they will still be able to get up to 4 per cent of returns on their investments annually.

As for the other two town councils managed by opposition MPs, both said they do not have any investments related to the Lehman Brothers products, so their sinking funds are not affected by the failed financial instruments.

The two town councils are Potong Pasir and Hougang.

Potong Pasir has S$6 million worth of sinking funds. The constituency’s MP Chiam See Tong told Channel NewsAsia that S$3 million is spent on government bonds like LTA bonds, while the other half is in the fixed deposit.

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29-Oct-2008 15:22

OCBC Bank / OCBC

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both DBS and UOB are down 59% and -53% respectively from their previous high while OCBC is only down 49%, alot of room for it to come down further.

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28-Oct-2008 23:35

Others / DOW

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Stock Market Lesson 101

Once upon a time, in a village, a man appeared and announced to
the villagers that he would buy monkeys for $10 each.

The villagers seeing that there were many monkeys around, went
out to the forest, and started catching them. The man bought
thousands at $10 and as supply started to diminish, the villagers
stopped their effort. He further announced that he would now buy
at $20. This renewed the efforts of the villagers and they started
catching monkeys again.

Soon the supply diminished even further and people started going
back to their farms. The offer increased to $25 each and the supply
of monkeys became so little that it was an effort to even see a
monkey, let alone catch it! The man now announced that he would
buy monkeys at $50 ! However, since he had to go to the city on
some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers. “Look
at all these monkeys in the big cage that the man has collected. I
will sell them to you at $35 and when the man returns from the
city, you can sell them to him for $50 each.” The villagers rounded
up with all their savings and bought all the monkeys. Then they
never saw the man nor his assistant, only monkeys everywhere!

Now you have a better understanding of how the stock market works.

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28-Oct-2008 12:10

Others / Market Rebound from 1500 - Let's hear the story

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expect some serious profit-taking in the afternoon in HSI and regional bourses poised to go lower in the afternoon. trade with care.

Singapore
Kuala Lumpur
Wellington
Seoul
Sydney
Tokyo

7.4%
6.1%
2.9%
2.4%
2.2%
1.1%

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28-Oct-2008 12:08

Others / Market Rebound from 1500 - Let's hear the story

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Singapore Kuala Lumpur Wellington Seoul Sydney Tokyo 7.4% 6.1% 2.9% 2.4% 2.2% 1.1%

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28-Oct-2008 11:21

Straits Times Index / STI to cross 3000 boosted by long-term investors

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yes elf, i agree support level is just a line.. for techies and traders to manipulate to their advantage.. well if u see ppl unloading millions of shares at all cost.. its scary.. and yet on the other side, we have ppl saying its cheap to go in.. well i m fortunate enough to see both side of the coin and yet pitiful to see these ppl's $$ kanna burnt to ash. this remind me of a story told by a veteran adventurer, he told me that as an adventurer, he will continue to go for greater challenge and higher heights for the satisfaction and most of the time they will end their life in the pursue of it and they are happy being so then just waiting to die on their deathbed.. so i presume many traders follow this too.. they will continue to try hitting the market till their last bullet expended and only then they realise every effort is furtile.. well since back in feb, most ppl ard me r saying that i m being over-pessimistic.. but well mkt has proven it again.. nonetheless good luck for those who r still trying to earn a living in this big lion den.. not goin to be easy and take care. money is jus a commodity and u can earn back over time.. cherish ur relationship and life is more impt.. i seen many of my friends having bad r/s becos of this recent turmoil and its saddening as a friend to see these happening to them. current mkt volatility is nothing we ever seen in stock mkt history.. and it really dazzle many fund mgrs etc.. sad to say many fund mgrs also din expect this coming too cos our current generation of fund mgrs r too green and many of them have yet to experience the major crisis.. they are only good for bull times and bear time.. its really differentiate the good traders/fund mgrs from the mediocre. i always tell my friends, a good trader is not someone who is constantly trying to beat the mkt.. a good trader is someone who know when to strike and when to stop when the tide is against them. i might not be a good trader or fund mgr but i can only say that i m discipline enough to stop me from all temptations.. i guess not many here will have the same temptations i have being to face the mkt everyday.. but i din even enter a single position since i liquidated all my holdings by end june. its jus not worth the risk for the miserable return u can get from mkt. given a choice, many fund mgrs i know also dun wish to participate in the mkt if they r not restrict to certain mandate etc..

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28-Oct-2008 09:56

Straits Times Index / STI to cross 3000 boosted by long-term investors

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Ak is right! no more support now, all those historical supports are just theoretical.. it jus give traders to buy up the mkt for quick trades and dump off on rally. you would expect the index to come straight down, sure got some leaps and bounds.. good for ppl to cut off and take profit if any.

Flee the market while you can... not worth the risk u r taking for that amount of return u get..

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28-Oct-2008 09:30

Straits Times Index / STI to cross 3000 boosted by long-term investors

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look out for some support at 1300, any rebound, SELL.. i expect this support to be broken and dive below 1000.. some support along the way and 1000 has always long-term psychological barrier.. if this is broken.. all investors will flee the mkt liao.. no eyes see..

its broken during the last asian financial crisis, i m not least surprise that we will break it again this time round, i m holding very conservative and worrisome view on the market. i m in the industry and i m facing the mkt at all times.. really scary selling all fund mgrs and investors fleeing the mkt.. can only see some stale bulls trying to make some quick $$$ in the mkt but mostly kanna wash out of the game..

though i m on leave now, guess wat i m still watchin the market.. wat to do.. not used to not monitoring the mkt.. lol.

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27-Oct-2008 23:25

Straits Times Index / STI to cross 3000 boosted by long-term investors

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Trichet: ECB rate cut possible at next meeting

By William L. Watts

Last update: 10:15 a.m. EDT Oct. 27, 2008

LONDON -- The European Central Bank could move at its Nov. 6 meeting to further cut interest rates, ECB President Jean-Claude Trichet said Monday, according to news reports. Trichet reportedly said a move will depend on upcoming data and will be tied to the need to maintain price stability. The ECB slashed its key lending rate to 3.75% from 4.25% earlier this month as part of a global round of interest rate cuts by major central banks.

elfinchilde ( Date: 27-Oct-2008 18:50) Posted:

yuppers CWquah. wed is the US rate cut, anyone knows when the ECB rate cut is?

intervention in the EU now i suspect. aussie intervened earlier too. lol.

for those still asking should i buy: SPH is your weathervane. when SPH collapses out of its range, that's a key sign that even conservative investors are leaving the market.

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27-Oct-2008 22:50

Others / AWAKENING OF BEAR

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i guess those vested now need this --->

Guard Alask bear repellent

available at all leading department stores.. well cheer up for those who r vested.. life still goes on.. money isnt everything.. wat lost can still b make back as long as u r still in the game. wealth accumulation is a long-haul game but sad to say most ppl wan to take short cut and take bet with it.. but anyway dun be so upset and tomorrow will be a better day. cheers..

i slowly liquidated all my holdings since mar 2008 on rallies.. i still remembered alot of my friends r laughing at me saying that i m missing out the uptrends.. true i might missed out some of the uptrend trend but then i dun take unnecessary risks. anyway market will tell who is right or wrong.

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27-Oct-2008 19:58

Biosensors / Is Biosensors a good buy?

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holy cow!!! i think many traders/investors as well as newbies are kanna burnt BIG time by this BIG.. i really wonder how many actually heel my advice and sell of their BIG holding before it crashed to death.

____________________________________________________________________________

Arbitrager
Member

Biosensors / Is Biosensors a good buy? / Posted: 18-Mar-2008 11:54 4Go to Message

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I REPEAT AGAIN:

SELL!!! SELL!!! SELL!!!

TP: $0.55, I based this on the company' current P&L losses and its ability to go back into profit in the near future.. as well as factoring the current market sentiments. If the economic condition continue to deteriorate, the TP can be going even lower..

Dun be overbullish on pharmaceutical and medical device companies.. there are so many such coys going bust without none of us noticing.. I am not implying biosensor will go bust now.. but i m just stating the nature of the sectors and coys similar to BIG.

Caveat emptor applies.. Do your own research on ur own. dun be blinded by the CE thingy. if its something so great, this burger will be selling like hot cakes with prices soaring rocket high despite the mkt sentiments. Refer to my earlier posts. I have been calling for SELL since 90c till now. See wat the price now? if you thinking of holding long term, this current price is definitely not the good level to sit in... more downside to come..

Its gonna be my last time saying on this counter. buyer beware. Just feel sad that so many ignorance newbies kanna burnt by this counter.

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27-Oct-2008 19:31

Straits Times Index / STI to cross 3000 boosted by long-term investors

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well its actually nothing new.. back then in Feb-Mar 2008 when ppl r still busy speculating and believing the decoupling story.. i already post my view saying that no way China or Asia can decouple and China or India are not able to make up for the fall in demand from US and Europe..

not surprise that the chinese govt still say that their economy is fundamental strong and able to weather thru the crisis. they are relatively new to this new capitalism world and they still yet to understand fully the true power of market forces. all along their factories and plants are operating at full capacity to meet the high demand from all over the world but now there will be a drastic fall in such demand and most govts will encourage their citizens/corporates to turn inward to their own domestic suppliers and exercise domestic protectism.. these factories and plants can no longer operate at full capacity and u will see major retrenchment going on which will hit their domestic consumption.. and the spiraling down effect goes on.. So much so on the macro picture, if you look deeper into the financial reports of these chinese coys, most of them are highly geared and operating on cashflow turnover.. when the business volume is high and revenue keep coming in, they are able to post 100-300% earning.. but now expecting the demand to fall and big drop in their revenue, these coys will have problem meeting their cashflow for loan turnover etc and i expect to see more of such coys going into bankruptcy in 3-6mths time when the full-blown effect is felt by everyone. as of now, ppl r still feeling "rich" and hence yet to really tighten their spending. when retrenchment and paycut kick in, we will then see the full effect of this turmoil.. likewise is going to happen in singapore, if you realise our govt has started to chance their stance on our economic outlook asking all singaporeans to be prepare for a prolong recession of 3-5yrs. looking the way our govt work, if they say 3-5yrs, it probably going to be much worse and longer..

seems like a v gloomy picture i painted but hey at times we have to be realistic and face up to reality. traders can still trade cautiously to eat their kopi $$ while the mkt is still alive and kicking, those working as employees brace up and work hard to keep your job, those jobless be realistic and make do with any jobs available (i hv heard of recent graduates not able to find a job since May as many r still v unrealistic asking for high starting pay, job mkt is gonna be v competitive soon when more graduates r on the street fighting for the same limited positions and employers will normally go for fresh grads as they r young and cheaper to hire) and lastly those uninvested, dun think so much of entering the mkt now or anytime soon... we arent seeing any bottoming anytime soon.. and the road of recovery will be yrs away.. y get ur $$ struck now while u can get stocks that u like at a much cheaper price later on.. and more imptly none of us will know if our job r secure and if we will need that $$$ anytime soon..

Below is my previous post dated way back.. stock mkt is not as forward looking as it was before.. hence we have to be more forward looking and anticipate where the mkt is heading..

Arbitrager
Member Straits Times Index / STI to cross 3000 boosted by long-term investors / Posted: 22-Feb-2008 13:11 4Go to Message

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Well said robbie.. I fully agree with you.. Singapore all along has been a price-taker.. so it highly influenced by other economies... Asia decoupling is just another excuse for the traders to push up the mkt.. though i agree india and china are big and will continue to grow probably at a lower rate.. but its absurd to say they can immediately fill up the demand vacuum created by a serious slowdown of US.

It take china and india a generation to totally change the current high propensity of saving population to become another consumer spending economy like US. India and China by and large are still major net exporters.. so it impossible to decouple from US.

the more ppl try to push up or hold the mkt, the worse the mkt will crash land... now too much cheap $$ and ppl jus received bonuses.. once all these r gone.. that's it.. and i see this coming..

in the world history.. i nv see any stock mkt bull run despite economy is in recession...

F1, IR and YOG are intiatives by govt to keep the economy going.. good effort there.. but then all these hipps r short-lived.. and if overall global economy is bad, wat make u think ppl still wan to travel and spend on such things.. imagine yourself only can barely make ends meets.. will u still go for a trip to see olympic or F1 race? Well, for sure, i wouldn't.. so jus some tinkers to think over..

rogue_trader ( Date: 26-Oct-2008 21:51) Posted:

Be careful of the "bubble" in China. Hope their government will have measures to contain that bubble from bursting. There a plot of land in somewhere near old Woodlands area with building being constructed, but left "vacant". People in the semi-conductor line will know what i meant by the bubble. And those whom have close China friends, no harm asking them what happened to the many of companies that have folded in the past 1 year. What caused the collapse? And will the average people there be able to afford their housing loans if their employment is affected?

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23-Oct-2008 15:38

SPC / SPC

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haha... SPC 3rd qtr net profit down 99.5% from $98mil to $500K. dun think will have any dividend..

http://info.sgx.com/webcorannc.nsf/0357d11048060bb84825735f0028e25b/2643708b505b6ce8482574e9002e2326?OpenDocument

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21-Oct-2008 18:19

Others / Inverse ETFs - Anyone know how or where to buy?

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inverse ETFs are listed in AMEX. you can trade via poems a/c too..

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18-Oct-2008 20:48

User Research/Opinions / Which counter might go bust next?

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avoid all china counters.. they r typically operating their biz based on rolling their cashflow.. so now, once the economy slow, not enough $$ to roll.. they will fail...

Hong Kong Finance Chief Warns of More Challenges (Update1)

By Cathy Chan

Oct. 18 (Bloomberg) -- Hong Kong Financial Secretary John Tsang warned of further economic challenges ahead for the city amid global financial turmoil, company closures and investment losses.

``The financial crisis will have a considerable economic impact on the economy, and people in Hong Kong should be ready for the challenges,'' he told reporters today after officiating at a ceremony. ``Still, Hong Kong's fundamentals and its system are healthy and our economy remains very strong.''

Tsang's comments came after three Hong Kong retailers and a toymaker collapsed within two weeks and as tightened credit conditions make it more difficult for smaller companies to refinance debt. Hundreds of Hong Kong investors protested in the streets last week over losses on so-called minibonds guaranteed by bankrupt Lehman Brothers Holdings Inc.

``We expect Hong Kong's economic activity will be very slow but still outperform other counties in Asia in the next six months,'' said Kenny Tang, director of Tung Tai Securities Co. in Hong Kong. ``China will contribute to Hong Kong's meager growth looking forward, and the city still has a solid financial basis, backed by its strong reserves and lack of foreign debt.''

Tai Lin Radio Service Ltd., a 60-year-old Hong Kong electrical appliance retail chain, was forced to close yesterday after accumulating HK$100 million ($13 million) debt.

Funds Frozen

U-Right International Holdings Ltd., operator of about 600 clothing outlets in the city and in China, had funds frozen after it was unable to meet a demand to pay HK$850 million of debt. Hong Kong's High Court on Oct. 6 appointed Deloitte Touche Tohmatsu as liquidator of the Hong Kong-listed company.

Smart Union Group Holdings Ltd., a Hong Kong-listed contract toymaker, said yesterday the city's High Court appointed two liquidators to take control of its assets. The company closed two factories in China's Guangdong province, Shanghai-based National Business Daily reported.

``The retail industry is definitely one that will be severely affected by the ongoing crisis,'' Tsang said. ``The health of small-to-medium-sized enterprises in Hong Kong is very important to us.''

Government Plan

The Hong Kong Association of Banks, which includes HSBC Holdings Inc. and BOC Hong Kong (Holdings) Ltd., agreed yesterday to a government plan to buy back Lehman's minibonds at market prices, after consumer allegations that sellers misrepresented the risks involved in the securities.

The Hong Kong Monetary Authority, the city's de facto central bank, said yesterday it referred to the Securities and Futures Commission 24 cases related to sales of the Lehman- guaranteed products.

``We're very happy about the banks accepting our buyback suggestion,'' Tsang said today. ``We will continue investigating some of the false-selling cases and establish a mechanism to facilitate dispute settlements between the banks and the investors.''

To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net.

Last Updated: October 18, 2008 02:35 EDT

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16-Oct-2008 02:11

Others / Jina fools us -Singaporeans gongkias 2008

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i foresee many china listed coys in sg will go bankrupt or report extraordinary huge losses.. during bull market, they keep posting good results.. and push up the prices.. now time are bad, i m sure they going to report huge losses and unable to get fiancing.. alot of these "profitable" coys will have to go bust cos all the while they have been adopting the cashflow rolling method to run their businesses.. as long there is cashflow these coys will stay.. once stops.. dead..

Furthermore, these listed coys dun have a good corporate governance system and the accounting method they used are not transparent and very "creative" in nature. hence the integrity of their earnings and P&L are not that credible.. we can see many china counters going bust every now and then..

caveat emptor applies.. buyer beware... wait you think u bought a diamond but turn out to be carbon.

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16-Oct-2008 02:02

Others / Predict when this financial turmoil will end

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how long the 1930s Great Depression took.. i foresee this financial crisis will take at least 2-3times the duration to recover since now everything is leveraged.

Reasons;

1.)Noone can determine the degree of leverage done on all these derivatives and degree of transparency of every individual banks to disclose their holdings. its a game theory among the banks, all of them have the incentive to keep their trump card unrevealled till the last. hence it hard for regulators to determine how much of such toxic derivatives they have.

2.) Noone can control the magnitude of the deleveraging process (how fast and how much)

New York insurance department could not determine total CDS on AIG

By Sarah N. Lynch

Last update: 11:16 a.m. EDT Oct. 14, 2008

WASHINGTON -- The superintendent of the New York State Insurance Department told lawmakers Tuesday that a lack of transparency on credit-default swaps made it hard for the state to know the broader effects of what an American International Group Inc.

American International Group, Inc

bankruptcy could potentially mean.

In testimony before the Senate Committee on Agriculture, Nutrition and Forestry, Eric Dinallo said regulation of over-the-counter swaps is greatly needed, and he pointed to the state's own experience in this recent crisis.

"When we were dealing with finding a solution for AIG, we knew the company had written almost half a trillion in swaps, but we had no idea how much in swaps had been written on AIG itself or by whom," Dinallo said in his testimony.

"That meant we did not know what the broader effect of an AIG bankruptcy would be. Also, in our work on the bond insurers, we could not determine the total credit-default swaps written on companies such as MBIA and Ambac."

Recently, New York Gov. David Paterson announced that the state of New York will start regulating credit-default swaps as insurance, but Dinallo said Tuesday that federal regulation is also needed.

"I think regulation would be excellent for this market," Dinallo said.

-Contact: 201-938-5400

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15-Oct-2008 23:00

Others / DOW

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September marks worst month for retail sales in three years. • Core PPI's up 0.4% • Empire State Index plummets • Inventories edge up 0.3%

Fund managers increasingly pessimistic on growth

Survey shows more managers believe global economy is in recession

By Sarah Turner

Last update: 9:17 a.m. EDT Oct. 15, 2008

LONDON - Pessimism about prospects for the global economy rose sharply in October, according to Merrill Lynch's monthly fund-manager survey.

The number of managers stating that they believe the global economy is already in recession jumped to 69% in October, the survey showed, up from 44% in September.

As well, a net 60% of managers believe that the global economy will weaken over the next 12 months, up from 37% in September.

Corporate profits are expected to weaken over the same time frame, 74% of managers said, up from a reading of 68% a month ago. A net 87% of managers say corporate operating margins will shrink, up from 79% taking this view last month.

The survey for October is one of the most pessimistic ever, in a month when fund managers lost faith in global growth, commodities, China's economy and emerging markets.

Nervousness grew against a backdrop of dramatic political and financial events.

In the past few weeks, governments around the world acted to shore up the financial system, while central banks instigated a coordinated interest rate cut last week.

A net 59% of managers said that they believe monetary policy is still too restrictive. This compares with 29% holding this view in September.

Meanwhile, 72% of managers say that short-term interest rates will be lower in 12 months time, compared with a reading of 51% a month ago.

Cash positions up

Markets have been on a wild ride over the past few weeks as hope that the plans to bail out banks vied with fear over how the global economy will hold up.

More managers moved into cash in October, the survey showed, with average cash balances rising to 5.3% from 4.8% a month ago.

The number of managers that are overweight cash increased to 49%, from 36% in September.

Still, with stock prices falling dramatically - European shares dropped 20% last week - more managers believe that share prices are undervalued.

A net 43% took the stance that global equity markets are undervalued, up from 15% a month ago. The latest figure is a 10-year high.

"Fund managers are waiting for the triggers that will give them the confidence to buy," said Gary Baker, head of EMEA equity strategy at Merrill Lynch.

"What they are looking for is a loosening of monetary conditions and for third-quarter earnings to clarify where problems and opportunities lie across equity markets," he said.

Over the month, mangers lifted their overweight on cash to 56%, from 40%, and raised their overweight on bonds to 17%, from 4%. They were more negative on equities, going from a 37% net underweight to a 45% net underweight.

Regional detail

Managers' overweight on U.S. equities fell to a net 18% in September, from a net 26% a month ago.

Underweight positions on eurozone equities increased to a net 41%, from a net 36% in September, while underweight positions on Japanese equities decreased to a net 9%, from a net 23% a month ago.

The outlook for corporate profits is most favorable in the U.S., a net 29% of managers believe, compared with 34% taking this view a month ago.

Managers became more positive on the prospects for Japanese corporate profits, with a net 7% stating that the country has the most favorable outlook for profit growth, up from 2% a month ago.

The euro zone is still the region with the least favorable outlook for corporate profits, a net 30% of managers believe. This is unchanged from last month.

"Europe has now assumed the U.K.'s mantel as the world's least popular destination for equity investment," said Karen Olney, lead European equities strategist at Merrill Lynch.

"Against this backdrop of fear over profits and recession, investors are selling expensive, highly cyclical industrials and opting instead for stable dividends and capital preservation," said Olney.

A total of 172 asset allocators managing a total of $531 billion in funds participated in the survey.

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10-Oct-2008 16:03

Others / Technical recession!!

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Global gloom

Exchange

Loss

Nikkei 225
Hang Seng
ASX 100

FTSE 100
CAC 40
DAX 30

9.6%
7.9%
8.3%

6.6%
7.7%
7.7%

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