Putnam Capital Markets Outlook: Third Quarter 2009
EXCERPT: While short-term corrections are inevitable, we regard the stock market's path in 2009 as a transition to a new bull-market regime with the potential to last for several years. The process of recovering from last year's near-collapse of the financial system, a process now well on track, will support equities as long as they do not become overvalued. We find today's valuations to be reasonable, and prospects for growth to be intact. Leadership from smaller companies and from growth-oriented sectors such as technology is consistent with a general economic rebound.
