One Strategist Says to Buy

While calls from sell-side strategists are often quickly dismissed, one recent strategist call caught our eye.  Last Wednesday, Morgan Stanley's European strategist, Teun Draaisma, said investors should move to an overweight in equities. 

Readers may recall last Summer when Mr. Draaisma issued a sell call based on a 'Full House' sell signal he saw in the markets.  At the time, we noted how prior calls from Mr. Draaisma were impressive.  In the chart below, we highlight his last two 'Full House' signals, both of which did an excellent job of calling peaks in the market.

In his shift to an overweight stance, Draaisma cites high levels of pessimism, a market with "valuations at recession levels", and prospects for continued cuts in interest rates.

Comments

[moom]

When did he last make an overweight call?

[Swapped]

He made buy calls in August 2007. Straddles the fence. Made buy calls all the way down the bear market of 2000-2003. Selective memory here by these authors.