Pessimism of investors harming equity markets

Extreme levels of pessimism are hampering European markets, which are down more than 30% in euro terms over the year to the end of September. Juliet Cohn, manager of Dresdner RCM's European fund, says: 'Sentiment has reached extreme levels of bearishness and many are attempting to justify why equities will face a fundamental shift in how they are valued. 'The arguments are not dissimilar from those made in 1999/2000 to justify the internet-inspired bubble. The same statistics that two years ago argued for a continuation of the bull market now show stocks are expensive.' Cohn be...