GRAHAM SECKER | MORGAN STANLEY
The markets are not going to be that far away from where they are right now. I don’t think there is a huge amount of upside for equities at this time given the structural problems that seem to be emerging. I would be very surprised if the FTSE didn’t fall back below 5,000 at some point in the next few months.
GERARD LANE | SHORE CAPITAL
Equities have discounted a global recession and while growth will be sluggish, as we move through the year the headwinds of the high oil price -- which to our minds has been the key depressant on economic growth -- that depressing effect will lessen on a year on year basis.
CLAUDIA PANSERI | SOCIETE GENERALE
There will probably be some change in figures for 2012 global GDP growth because of the fiscal tightening but 2011 expectations are not pointing to recession. Therefore, by the end of the year the FTSE should trend above the current level because they already taking into account a major slowdown.
IAN SCOTT | NOMURA
We think the market has over-reacted to the signs of slowing in the macro data...We think the market is now priced for a substantial slowing in activity – more than we expect to occur – and we think the market should recover as better datapoints reassure it over the second half of the year.
RICHARD BUXTON | SCHRODERS
Once the markets fall as heavily as they are doing, forced selling and a buyers’ strike ensure far heavier falls than would be justified by valuations...It is at this stage that governments and central banks have to intervene to stop the downward spiral and cause a more level-headed assessment of the oulook.