Rough start to U.S. earnings season doesn't mean stock rally is done


	Rough start to U.S. earnings season doesn't mean stock rally is done

Forbes Markets

10-23-2007 12:41 AM

603 views

tags:

equities, markets, u.s. economy, wall street

Forbes Markets says:

Bullish take from Teun Draaisma, head of European equity strategy at Morgan Stanley.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/989997b2-366b-4d09-94b9-2e28f26efc52/4F097A17-EAFA-4EEB-ACDF-D3CC2B2E8DE5/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.ft.com/cms/s/0/63985394-80b8-11dc-9f14-0000779fd2ac.html" href="http://www.ft.com/cms/s/0/63985394-80b8-11dc-9f14-0000779fd2ac.html" style="font-size: 11px;">www.ft.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ft.com/cms/s/0/63985394-80b8-11dc-9f14-0000779fd2ac.html"><P>The US earnings season has started badly but the “rally is not over”, says Teun Draaisma, head of European equity strategy at Morgan Stanley.</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ft.com/cms/s/0/63985394-80b8-11dc-9f14-0000779fd2ac.html"><P>He sees 10 per cent upside to European equities on a 6-12 month view, and believes that the time to sell equities would be if valuations get expensive, inflation becomes a problem, or if a recession does take place. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.ft.com/cms/s/0/63985394-80b8-11dc-9f14-0000779fd2ac.html"><P>In addition, Mr Draaisma has looked at historical lessons from periods of Fed interest rate easing, and concludes that, all things being equal, there has normally not been a hurry to sell equities until the time when the Federal Reserve begins raising rates again, which Morgan Stanley’s economists expect in early 2009.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/4F097A17-EAFA-4EEB-ACDF-D3CC2B2E8DE5/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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