After a spectacular year and one of the greatest rallies in the history of the equity markets stocks are now arguably oversold, overvalued and on borrowed time. In terms of their macro 2010 outlook Credit Suisse (CS) sees 4.1% global GDP (3.3% in the U.S.) and muted inflation.  They are quite positive about the first half of 2010, however.  They target 1220 on the S&P by mid-year and 5750 on the FTSE.  However, CS is increasingly concerned about a government funding crisis that eliminates all market gains in H2 of 2010 and sends markets’ reeling again as the problem of debt, once again rears its ugly head.

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