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7/16/07

Bloomberg.com: World Economy -Stocks in U.S. Poised for 10 Percent Drop, Options Bets Show - by Nick Baker and Michael Tsang

For the complete report from Bloomberg.com click on this link

Stocks in U.S. Poised for 10 Percent Drop, Options Bets Show - by Nick Baker and Michael Tsang

Bets in the options market against the Standard & Poor's 500 Index have exceeded wagers it will rise by a 2-to-1 margin for a month, the longest since Bloomberg began compiling the data in 1995. That's seen as a warning sign the market is due for a decline of 5 to 10 percent after the S&P 500 rose to two records last week, say managers of almost $1 trillion at Morgan Stanley Global Wealth Management, National City Private Client Group and Russell Investment Group.

. The Leuthold Group, whose flagship fund has beaten 99 percent of similar funds over the last five years, expects the S&P 500 to slide as much as 19 percent by the end of the year.

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