Stocks in Europe, Asia Decline; MSCI World Falls for 11th Day

[Joanne98]

Feb. 24 (Bloomberg) -- Stocks in Europe and Asia retreated, extending the MSCI World Index worst start to a year, as the deepening recession eroded earnings and pushed German business confidence to a 26-year low. U.S. futures advanced.

TomTom NV, Europe’s largest maker of car-navigation devices, tumbled for a ninth day after reporting a fourth-quarter loss. Novartis AG, Switzerland’s second-biggest drugmaker, dropped 1.6 percent as Chief Executive Officer Daniel Vasella said pressure on drug prices and patents will grow this year. Nomura Holdings Inc., Japan’s largest brokerage, slumped 9.3 percent on its plan to sell shares after four quarterly losses.

The MSCI World slid 0.6 percent to 752.76 at 10:43 a.m. in London, falling for an 11th day. The gauge of 23 developed countries retreated 18 percent in 2009 as companies from Anglo American Plc to Cie. de Saint-Gobain SA indicated the recession is worsening. This year’s drop is more than double the 8.8 percent slump at the same point in 2008, when the MSCI World posted its biggest full-year decline since the index was created in 1970, retreating 42 percent.

“This is turning out to be one of the worst bear markets in the past 100 years,” Bob Parker, who helps oversee $600 billion as vice chairman of Credit Suisse Asset Management, said in a Bloomberg Television interview in London. “The question we have to ask is: what are the catalysts for creating a base and what are the catalysts for an eventual rally.”

Cheapest Since 1985

U.S. futures rebounded after the Standard & Poor’s 500 Index sank 3.5 percent yesterday, leaving the index valued at its cheapest relative to earnings since 1985. Futures on the S&P 500 added 0.3 percent today as JPMorgan Chase & Co. strategist Thomas Lee issued a “trading-buy” on the index with a “short-term” target of 800.

http://www.bloomberg.com/apps/news?pid=20601087&sid=agvmh0xFmV0g&refer=home

[GoesTo11]

1. I'm starting to think it's time to buy

I don't believe it will be going to 0 - Obama's president, not Nero.

Unfortunately, I don't have a big pile of cash to go buy because I was such a stupid investor leaving my money in stocks all along. So don't listen to me.

[GliderGuider]

2. Now is NOT the time to buy.

While the indices may not go to 0, they will go a lot lower than they are now. I don't expect broad stock buying opportunities for at least another two years, and even then only if the world's political leaders cure their malignant case of recto-cranial inversion.

I suspect one would be much further ahead right now putting their money into good hand tools for their garden and workshop.