Retest of lows unlikely but don't see bull mkt yet

Tobias Levkovich, Equity Strategist, Citi, is bullish on markets. He feels sentiment is better but there is still some scepticism. "Valuations are relatively attractive as volatility levels are coming down. Earnings expectations are also down sharply. Hence, we see opportunity in markets." He said markets may not go back to lows, but was quick to add that he does not see a secular bull market yet.

He believes there is need to see a very sustainable economic growth environment. "The US may not come out of negative GDP environment in the near-term. Investors are also questioning economic fundamentals as capitalism fails."

Levkovich is not excited about the bond market as it has underperformed equities.