They are significantly lower for radiologists 5The course of 2010 promises to be made hollow and bumpsNew forms of payment credit card InternetNeeds to be done quickly but the countdown is initiatedA very juicy system and obviously leads to swelling of the costsMonday the store Parisian Colette see redI feel no heat in the vacuum of the beyondBooks can be used in an internal competitionNot easy to fight Apple Google RIM and Samsungl June 2005 the trust refused to VillepinThe recoil sensitive oil and base metals prices, since the summer, reflects economic slowdown now work across the Atlantic. But operators refuse to consider a brutal stall him preferring the scenario of a landing soft US economy. It is on this hypothesis that is the current ranging from Wall Street, where the trend strongly oriented to increase has led the Dow Jones index to new heights these days. Yesterday evening, it has still improved its all-time record at the end, by pushing up to 11.850,61 points, after having reached 11.651,25 points at the meeting.
Logically, the decline in the prices of raw materials would have the result in shortness of breath of equity markets. But for the time being, they do have cure. Investors believe that this relaxation suggests on the contrary perspectives of improvement of the results of listed companies and a flow of inflationary expectations. The pragmatism of the reserve Federal American, led for the moment its short rates only slightly restrictive territory, has also support this demonstration.
In the opinion of many professionals, the markets should therefore continue their momentum. The most optimistic based their analysis on a still attractive valorization reinforce long rates falling and always exceeding expectations of profits growth. In Paris, for example, where forecasts of profits still come to be reviewed in 2006 increased, the assessment of the CAC 40 has what attract investors to a capitalization factor estimated at 12 on 2007, lower level to the historical ratio of the Parisian market, says Régis Lefort, responsible for the analysis of Gilbert Dupont Office.
Several technical factors are also green, which contribute to support the trend. The volatility is significantly reduced back to its lowest levels. Liquidity is still abundant and restructuring operations are completed. More surprising, the markets are resistance capacity yet still disturbing geopolitical context. Day before yesterday, that's all right if the threats of North Korea to soon conduct a nuclear missile firing are not gone completely unnoticed. They did not in any case prevent the Dow Jones index to record a new record.
Visibility to 2007
For the time being, the month of October, often sinister memory for scholars, seems announce under the best auspices. Litters by Wall Street only to some see soon reach 12,000 points, the European places come back to their highest level of the year. And some, such as Brussels, Zurich and Madrid, have already returned to their records of 2000. This is not yet the case in Paris, but it is true that the CAC 40 had been sucked more than its counterparts in the upward spiral of the technology bubble and that he had more highly corrected later.
If number of strategists agree on the ability of the equity markets to continue the positive momentum by the end of the year, they are more reservations beyond. "Their potential appears limited to the horizon 2007 face a growing risk of revisions to the decline in profits," and stressed Eric Tazé-Bernard, responsible of the strategy of investment portfolios in Invesco.
"The macroeconomic visibility beyond the end of the year is poor, not to mention that there are still major homes of geopolitical risks and that, more recently, have resurfaced for emerging countries, such as the Hungary or the Thailand risk" outbid the French of investment managers. What is certain is that the long period of grace of the small cap, emerging spaces and raw material sectors is indeed complete for now income investors, with lower growth, guiding markets and their large values.
