WEST PALM BEACH, FL (www.hedgeco.net) – The Chief Investment Officer of Emergent Asset Management, David Murrin has predicted that the global equity markets will see additional declines in 2005, suchdecline, may send equity indexes down by about 20 to 30 percent according to him. Murrin said, Globally, we are very negative on equities this year, I think stock markets could go down significantlythis year — 20 to 30 percent. This will be a very bearish year for stocks.�

Other equity market analysts differ from Murrin�s viewpoint. Many believe that equity markets will rise by about 5 to 10 percent in 2005. Murrin also said that this may be a period when �you get shocked by things, where there’s an event that appears to be random that changes the dynamic.� Murrin believes that further increases in the price of crude oil is still possible in 2005, he also think that a possibility for political instability in the Gulf region, particularly in Iran may also be possible.

Murrin explained, “It’s interesting with the evolution and growth of hedge funds, a lot of people are into spread trades because they think they are less risky and investors like them. I think this is a time when spreads are going to go completely haywire … and the picture is potentially very unpleasant.”

David Murrin�s firm, Emergent Asset Management operates five hedge funds; their year-to-date average this year ranges between 0 and 20 percent. Emergent has about 100 million pounds ($191.5 million) under management.

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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