Stock markets: the dash for trash

Equities are back in fashion - but the chances are this rally will peter out, and investors will get their fingers burnt.

You can see why many investors are "worried that the claws of yet another bear trap" have been "sharpened", says Michael Mackenzie in the FT. The FTSE 100 had gained 17% by late last week and the S&P 500 23%, marking its best four weeks since 1933. But chances are "this rally will peter out", says Buttonwood on Economist.com.

Last week saw some less-awful-than-usual data and the G20's pledge of $1trn to bolster the economy. But much of this had already been announced or adds up to far less than meets the eye. In any case the G20 didn't address the fact that we have yet to purge banks' toxic assets, the main precondition for a sustainable recovery, says Lex in the FT.

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