it would be difficult for equity markets to absorb a major shock to the system
Darien, CT (PRWEB) April 09, 2012
MVS Management LLC Chief Investment Strategist John Olympitis, in a letter to investors posted on the firm's website, re-affirmed that he expects the S&P 500 to end the year at roughly the same level as 2011 and is worried about the irrational gains so far this year.
In the letter, posted on the Darien-based Investment Firm's website, Mr.Olympitis states he believes that the move upward in equities was fueled by expectations of further rounds of Quantitative Easing and a complacency that the European Debt Crisis has been solved by the latest Greek bailout.
The letter warns that the European situation is not close to being solved and that the EU will have to "stomach bailouts for Portugal and probably Spain" as well as survive an election in France in which "the frontrunner is opposed to the current policy".
Other worries stated are that the index has become too reliant on Apple Inc shares to move higher; and that lower than average volume on exchanges mean it would be "difficult for equity markets to absorb a major shock to the system from Europe or elsewhere."
The firm expects the S&P 500 to end the year at around the 1350 level.
A full text of the letter is available at:
MVS is a Connecticut based Investment Advisor and Family Office that invests in, develops and distributes alternative investments.
For more information, please visit: http://mvsfunds.com/