Citi’s Fitzpatrick – Major Markets to Resume Their Decline
KingWorldNews.com
June 27, 2012
Today top Citibank analyst, Tom Fitzpatrick, told King World News, “For people who feel that Germany is just going to capitulate, Merkel has been fairly clear that she is taking a hard line.” Fitzpatrick, a 28 year veteran and top analyst at Citibank, which has $1.3 trillion in assets, also said, “We expect to see a reemergence of the stresses, as well as the equity markets beginning to fall again.” But first, here is what he had to say about deteriorating consumer confidence: “We’ve been looking at this for a while, and, if you look at the overlay of the consumer confidence index vs the equity markets (see chart below), what it quite clearly shows, contrary to what most people think, is that the consumer sentiment drives the equity markets rather than vice versa.”
Tom Fitzpatrick continues:
“We saw that in 2000, 2007, and again in 2011, that when consumer confidence peaked and turned, it’s often an early warning sign that markets are headed lower. Within a couple of months you started to see equity markets come under pressure.
It’s been no different this year, with the consumer confidence turning in February. Then we saw the S&P turn in April, and the Dow top out on the first trading day of May. Looking at the chart, we’re convinced it’s a very strong double-top formation, very similar to what we saw back in 1980.
The Rest…HERE
