Changing position for first time this decade; Fed quicker than ECB, it says LONDON (MarketWatch) -- Credit Suisse strategists, for the first time this decade, recommended that fund managers buy more U.S. stocks than a world index would suggest, saying that authorities state-side are likely to be quicker on the draw than their European counterparts in responding to slowing economy. The strategists on Monday raised their rating on the U.S. to 5% overweight, from benchmark. They pointed out the U.S. Federal Reserve is one of the only central banks with a clear growth mandate. "Thus, we believe that the Fed will continue to be more balanced in its assessment of inflation risks," the strategists said, adding that labor-cost inflation and corporate-sector pricing trends both suggest that underlying inflationary pressures are well contained. From a current level of 4.25%, the strategists said the Ben Bernanke-led Fed may slice the fed funds rate to as low as 3% by the end of the first half of 2008. "By virtue of the weakening dollar and the Fed's easing cycle, monetary conditions are now far looser in the U.S. than in Europe," they noted. As for the housing market downturn, it said the U.S. is up to two-thirds of the way through the downward adjustment. The best lead indicators of the U.S. -- the new orders component of the Institute of Supply Management's manufacturing index, and the expectations component of the University of Michigan's consumer-confidence gauge -- probably won't get any weaker from here. http://www.marketwatch.com/news/sto...x?guid={EDBD27E6-D5D5-4357-9795-85C4C3E18A9F}
Hold on.. hold on. Let me make sure I understand this correctly. The Fed will continue to be BALANCED in its assessment of inflation risks? LMAO.. The average Thanksgiving dinner cost 11% more in 2007 than it did in 2006, sure, inflationary pressures are 'well contained.' LMFAO.. Thanks CS, you can buy in our Bear Market if you want; there has to be someone on the other side of my trades in order for me to profit.
Credit Suisse and I share the same sentiment--they want to pump up US Equities a bit higher ahead of the huge sell off. You can't blame them.