The end of the rally
When global markets started to rally in March 2009, we were sceptical. We couldn’t see how the problems kicking around the markets could have been solved, and we didn’t buy into the idea of the V-shaped recovery.
Instead, we worried about the ongoing semi-bankruptcy of the banking sector; about the suspiciously super-speedy growth in China; about the huge national debts accumulating across the West; about house prices in the US and UK; and, of course, about inflation.
Yet the markets kept rising – so much so that we had to start wondering when we would be forced to stop referring to the bear-market rally and start referring to the bull market.
No longer. Think of the headlines this month – the Greek crisis; the ongoing falls in the Chinese stockmarket and renewed concerns about a Chinese property crash; the collapse of the euro; spiralling deficits forcing austerity drives across the world. That’s just the financial headlines. No wonder the bear market rally seems to have come to a pretty abrupt end.
• Read the full editor’s letter here:
The end of the rally
Also in this week’s magazine:
• From the editor: The end of the rally
• News: EU clamps down on finance
• Markets: Steer clear of Thailand
• Share tip of the week: Booming Chinese health stock
• Turkey of the week: Over-optimistic leisure group
• Gamble of the week: Bargain-basement electrical chain
• Strategy: Is there anything in the charts?
• Personal view: Profit from volatility with forex
• Briefing: London mayor takes Tube into public hands
• City view: Why Osborne must be bold
• Tax advice of the week: Offset the cost of your motorbike
• Personal finance: What to expect in the emergency budget
• Cover story: The rally’s over, what’s spooked the markets?
• Cover story: What the ‘fear gauge’ says about the markets
• Cover story: How to hedge your bets against the sell off
• Entrepreneurs: How I woke Ireland up to the taste of coffee
• Profile: The fall from grace of the Icelandic raider
• Travel: Where to stay in Morocco
• Last word: Successful failures