Time for the evidence to justify market rally

With markets rallying dramatically, investors' confidence has clearly rebounded as the threat of a potentially global depression lifted.

This was primarily achieved through aggressive and innovative actions by central banks and, even if one does not agree with the speed, magnitude or the beneficiaries of this action, most commentators accept the global economy would be in far worse shape without it. Importantly, such action has increased US firms’ access to credit, the restriction of which was the most worrying feature of the economy earlier in the year when fundamentally sound franchises were denied funds to operate. To us, this is a significant positive, as the credit crunch has had a far greater impact on the corporate...