Yoshikami Counters Dr. Doom’s Prophecy Of A Further 20% Fall

In

, Michael Yoshikami, President & Chief Investment Strategist of YCMNET Advisors advises caution in the ‘investment strategist world.’ Although economies worldwide are recovering, treading ahead is going to be tough. Some of the pullbacks will be deficits, excess regulation, high unemployment and hangovers from bad decisions by consumers and businesses. All of them are going to make it a long difficult climb from years of excesses. Howsoever weak, recovery is surely taking place, with market sentiments a definitive positive since March 2009. Yoshikami does not approve of economist Nouriel Roubini’s views that stocks will fall 20% from current levels. He gives the following reasons for not supporting Dr. Doom’s views. - The banking sector is beginning to heal and is nowhere near the fragile state it used to be once. Capital ratios have improved and confidence is higher than it was 15 months back. Banks like Wells Fargo

and Bank of America

are showing strong signs of the financial sector turning round the corner. - The economy is continuously pointing out that the recovery has begun. While earlier in March 2009, consumers and investors thought that we were on the verge of a depression, they no longer believe so. Although the economy is going to struggle a lot in the upcoming days, no economic collapse can be sensed. - The European Union (

) seems to be regaining stability, thanks to the actions taken by the European Central Bank led by Jean-Claude Trichet. - The consumer middle-class is on a rise in China, the country which is the driver for global economic activity. Growing affluence around the world is going to result in an increase in spending.