Reuters reported that UBS raised its outlook on 4 US employment stocks.

NAME RIC RATING

New Old

Heidrick & Struggles International (HSII.O) Neutral Sell

Korn/Ferry International (KFY.N) Neutral Sell

Robert Half International Inc (RHI.N) Buy Neutral

Manpower Inc (MAN.N) Buy Neutral

What does this mean ?

Staffing companies became "Buy", while the two leading executive search firms are now "Neutral". Yawn. Yes, the market is "steadying", and the overall outlook of opinion makers turns optimistic.

I was in a conference last week in Istanbul featuring Prof. Steve Hanke on the Economic Crisis, its causes, effects and the so-called "New World Order" resulting out of it. Professor Hanke, a former economics advisor to US presidents, saw light at the end of the tunnel - though he started his speech claiming that 95% of what you read about economics is wrong.

Yes, the overall psychological mood, the absolutely necessary requirement and ingredient for economic recovery, is improving. Now what about the upgrades of the venerable analysts? A "Sell" simply means get rid of the stock, the upgrade to "Neutral" is an upgrade to an euphemism saying just the same. Don't spend your dimes buying those stocks.

My take is that the pain for Korn Flakes and Heidrick & Struggling will continue, and worsen. Both will undoubtly report results that trail behind the "steadying" market. Furthermore, that market itself is by far not a return too good ol' 2006 and 2007. In this light the neutral rating says more about the mindset of the analyst themselves, and reflects a cautious consensus the worst is behind us.