Gary Baker, Bank of America Merrill Lynch Global Research has expressed his views on the global market and it makes sense to read the minds of these people as they do have some classified secret nature and one need to read between the lines to get to the bottom of the meaning which is hidden in their words. His quotes is as appended below:
I must say people tend to get excited about the seasonal affects and fair enough they were at various points in the past but equally if you look at years like 2008 then quite the reverse happened. Given the nature of this crisis, it seems to me that people want to see this year out rather than thinking there is another trade to be had and being active. We are seeing that in terms of fall in volumes. It doesn’t seem to me that the scope for year-end rally looks to be there. The one exception to that might be if you saw Chinese policy action in terms of whether that is rate cuts or reserve ratio requirement cuts. There is some speculation that might happen before Chinese New Year. So, maybe early next year rather than pre-Christmas might be a better bet.
