“Okuma Group” The final nail in the coffin of the V-Shaped recovery could be at hand.
Online PR News – 16-March-2010 – – “Okuma Group” analysts suggest that the recent slew of data pointing to a weaker than expected US economic recovery could be joined by what they call “gamechanger” figures in the form of the monthly employment report from the US Labor Department.
February’s non-farm payrolls report is likely to be the main event on Wall Street as the market looks for confirmation, one way or the other, as to the state of the economic outlook for America.
Weekly jobless claims for the last two weeks have been higher than expected and falls in both consumer confidence and sales of existing homes have been lower than expected and this, say the “Okuma Group” analysts, has left markets in a holding formation.
“Okuma Group” sources suggest that a strong number would offset the data on claims whereas a weak number could act as confirmation of the negativity permeating the markets and mark the beginning of a protracted sell off on equity and commodity markets.
The firm has told clients to avoid following the herd and buying into the US dollar which has staged an impressive rally over the last 4 weeks citing the worries over the euro as the chief catalyst for its revival rather than any intrinsic strength in the US’s economic outlook.
“Okuma Group” believes that any sell off in the markets will return stocks to retest the March 2008 lows thereby providing investors with an opportunity to acquire stocks at cheaper valuations.