Rally of '09 the Last Like That in Our Lifetime: Strategist

http://www.cnbc.com/id/37728387
Rally of '09 the Last Like That in Our Lifetime: Strategist
Friday, 18 Jun 2010

Last year's stock-market rally won't be repeated for the foreseeable future and likely not for decades, Sean Corrigan, chief investment strategist at Diapason Commodities Management, told CNBC Friday.

In addition, the European Union's decision to publish stress test results on all of its banks is merely "window dressing," Corrigan said.

"I can see clear signs that the second half is going to produce much less positive headlines," he said. "We've already had an enormous rally."

Looking at previous economic collapses in the 1920s and 1930s, "the first 12-to-15 months a huge rally occurred when the monetary spigots were turned back on and people got back into the market and thereafter it became much more choppy," Corrigan added.

"You're not going to see what we saw last year," Corrigan said. "I think we've probably seen that for our lives unless we destroy the monetary system and stocks roar away on that basis."

'Window Dressing'

The EU's move to present stress-test results is only adding redundant regulation, Corrigan said.

"Do banks not present quarterly accounts, are there not stock market regulators and banking regulators, why do we not know what's on their balance sheets?" he said. "Because there was complicity at the top to hide the problems two years ago."

"I think this is window dressing," Corrigan said. "I don't see what's in this that's not in existing regulation, which should have been applied not just to the banks but to every other company."