Morgan Stanley has issued a "full house" buy alert on international stock markets
- First time since early 2009
- MS says all five of its market-timing signals are now flashing a buy signal
- Says selling-fever is close to capitulation
- MS add this is a rare event
- Should lead to a V-shaped recovery
- Looking for a 23% gain over the next 12 months
Graham Secker, head European equity strategist:
- Recent sell off driven by emotion
- Not by the underlying outlook for the world economy
"Equities remain very cheap relative to government bonds and there remains a lot of liquidity around that is looking for a home"
Secker does point out, though (bolding mine):
"Our indicator is not the Holy Grail of investing. We think that on the balance of probabilities, the risk-reward ratio looks pretty good right now, but it is not a very good week-to-week timing signal"
Gonna be 'more to come' on this
