BCA Research for March 2012

BCA Research March 2012 Bank Credit Analyst comes with following headlines:

• The structural problems in Europe remain unresolved, making another market
  riot likely later this year. Greece may well leave the euro within the next two
  years, and if it does, this could trigger the exodus of other countries.
• The U.S. housing sector appears to have bottomed and the labor market
  is improving. That said, the durability of the recovery is far from assured,
  especially if gasoline prices keep rising and the economy is hit by major fiscal
  tightening in 2013.
• Against this fragile backdrop, the Fed will keep rates at rock-bottom levels
  for the next few years. Other central banks have also turned much more
  accommodative, which will help support growth and risk assets.
• For now, we continue to recommend a modest overweight in equities and
  corporate bonds. However, given the fragility of the financial and economic
  environment, we will not hesitate to move back to a neutral or underweight
  stance if the situation in Europe flares up again or the U.S. economy begins to
  slow.