March 2009 Lows Will Be Tested: Strategist

The stock markets’ March 2009 lows could be tested and even broken as sovereign debt continues to grow in Europe and stimulus measures wane, Philippe Gijsels, head of research at BNP Paribas Fortis global markets, told CNBC.com Tuesday.

When this stimulus is taken out of the system, we will see the emperor has no clothes, Gijsels said.

“As stimulus is gradually taken off and replaced by higher taxes the economy will slow and economic and corporate figures will start to disappoint.” he said. “This means that the mother of all bear-market rallies is over and bears now have a good shot at the March 2009 lows which will possibly even be broken.” Read more