Welcome Guest   |  Login   |   Signup
JG Logo
Thu, May 24, 2012
Archive Search

US Shares Could Surge 20% After Dust in Europe Settles
May 11, 2010

Europe has agreed a package of crisis aid for troubled eurozone countries totalling "more than 500 billion euros." (AFP Photo) Europe has agreed a package of crisis aid for troubled eurozone countries totalling "more than 500 billion euros." (AFP Photo)
Share This Page
0
0
0
0
Share with google+ :


Post a comment
Please login to post comment

Comments

Be the first to write your opinion!

Sydney. US stocks could jump as much as 20 percent, led by technology companies, as the global economy rebounds from Europe’s debt crisis, a major hedge manager predicted on Tuesday.

“I’m betting the next move in the United States market is going to be up 15 to 20 percent,” Barton Biggs, who runs New York-based hedge fund Traxis Partners and whose flagship fund returned three times the industry average last year, said. “The world is having a strong economic recovery, and so is Europe.”

Biggs recommended buying United States stocks last year when benchmark indexes sank to the lowest levels since the 1990s. He did not give a time frame or refer to any specific stock index.

The stock gauge climbed 4.4 percent on Monday, the most in more than a year, after European policy makers announced a nearly $1 trillion loan package to contain the region’s sovereign-debt crisis. The S&P 500’s advance followed an 8.7 percent slide since April 23 — and the biggest weekly retreat since the start of the bull market in March 2009 — on concern Europe’s leaders were not doing enough to avert threats to global credit markets.

An index of the S&P 500 Index’s computer hardware companies was the biggest contributor to Monday’s advance.

“There are plenty of opportunities in the United States,” Biggs said, adding that shares in drug developers look cheap and that property companies were also attractive.

“It’s by no means a foregone conclusion that we have a crisis every three years and, my God, that the world is coming to an end. I don’t believe that’s what’s happening at all.”

Governments in Europe have agreed to a $1 trillion rescue package for the most-indebted countries. The European Central Bank said it would counter “severe tensions” in “certain” markets by buying government and private debt.

Europe’s debt problems illustrated the need for nations in the region to evolve towards a federal system of government capable of enforcing more “discipline” on countries, Biggs said.



Bloomberg