Article written by Prieur du Plessis, editor of the
href="http://www.investmentpostcards.com">Investment Postcards from Cape Town blog.
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style="text-align: justify;">With many investors lately having become extremely nervous about stock markets, Citigroup strategist Tobias Levkovich argues that the all-out panic actually presents a great buying opportunity for investors.
style="text-align: justify;">“The proprietary Panic/Euphoria Model has been in panic territory since August 19th and the level generates a near 90% chance of higher equity prices in six months and a 97% probability of teen-like gains in the next 12 months (see Figure),” said Levkovich (via
href="http://www.businessinsider.com/citi-panic-euphoria-model-says-buy-2011-10?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=Money%20Game%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_100511" >Business Insider). Back in 2000 and 2008, there were indications of euphoria; not dour sentiment. Furthermore, the significant disavowal of equities as an investment asset class by the general public is obvious given the large US stock mutual fund withdrawals. Such a trend sends a fairly clear contrarian message of opportunity.”
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href="http://www.investmentpostcards.com/wp-content/uploads/2011/10/chartoftheday.jpg" >
class="alignnone size-full wp-image-34144" style="border: 1.5px solid black;" title="chartoftheday" src="http://www.investmentpostcards.com/wp-content/uploads/2011/10/chartoftheday.jpg" alt="" width="515" height="387" />
style="text-align: justify;">Source:
href="http://www.businessinsider.com/citi-panic-euphoria-model-says-buy-2011-10?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=Money%20Game%20Chart%20Of%20The%20Day&utm_campaign=Moneygame_COTD_100511" >Business Insider – Money Game, October 4, 2011.
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href="http://www.investmentpostcards.com/2011/10/06/picture-du-jour-citis-%E2%80%9Cpanic-euphoria-model%E2%80%9D-screams-buy/">Picture du Jour: Citi’s “Panic-Euphoria Model” screams BUY was first posted on October 6, 2011 at 6:00 am.
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