Tyler Durden has kindly included a download of the Bank of Montreal research piece. From Tyler's comment:
BMO Has A Simple Message To Its Clients: Go To Cash
Not much clarification needed. Here is the gist: "We advocate switchingHats off to Tyler for posting this report.
out of equity positions and going to cash. The European sovereign debt
crisis appears to be nowhere near over. The global credit
environment is worsening. Cost of capital is going up and availability
is going down. There are large gaps between where the credit market
prices risk and where the equity market is priced. Equity is lagging the
deterioration in credit conditions. Moves in currency, equity
and commodity markets are mirroring the moves in the credit market.
Global growth, in a credit-constrained environment, will slow. Profits
will be squeezed by the higher cost of capital...We advocate a
zero weight toward equity, and that investors convert their equity
positions to cash."