Dai-ichi Securities / Jump In Growth For US Economy
“Dai-ichi Securities” on news from the US that economy grew more than expected in 4th quarter.
Despite serious doubts that the US economy will be able to maintain its growth once government support is withdrawn, “Dai-ichi Securities” analysts said that figures showing that the world’s biggest economy expanded by a more-than-expected 5.7% in the fourth quarter of 2009 provided reason for equity bulls to celebrate.
Still, the Asian-based boutique broker is well-known for its skepticism towards the notion of a sustainable recovery without the full participation of the consumer and it reminded clients that a double-dip or W-shaped recession was far more likely than the V-shaped variant that the “pump and dump” pundits are advocating.
A source close to “Dai-ichi Securities” said that although the pace of job losses in the US had undoubtedly slowed, it was highly likely that they would continue to rise in the months ahead.
The figures mean that the US economy shrank by 2.4% in 2009, its worst performance since 1946 but “Dai-ichi Securities” analysts are expecting that additional stimulus will be provided by the Obama administration in the event of the onset of a double-dip recession.
“Dai-ichi Securities” advised clients to be on the lookout for the equity markets to continue to shed “excess” and to keep funds available for opportunistic stock acquisition.