This just in from Merrill Lynch about the sell-off yesterday. The piece is called "While Athen Burns..." - Head Strategist Michael Hartnett
"Drivers of the sell-off: earnings, interest rates/liquidity and positioning. China
growth fears and European credit contagion & deflation are the key macro drivers."
"Global equities are off over 10% from their April 15th highs. Three reasons why:
earnings, interest rates/liquidity and positioning."
The excess liquidity phase of the bull market is coming to an end
European deflation a huge risk
Market is now differentiating between creditors & debtors; companies with
ambitious funding schedules may be penalized.
Companies are safer than countries
Best of breed stocks to outperform"