Reflation and liquidity the keys to defeating credit woes and fear

It would be an understatement to say that global equity markets have been volatile in 2009.

After sinking sharply in January and February, as economic data continued to worsen and as investors grew uncertain about policymakers’ next steps in combating the credit crisis, global equities went on a tear in the next couple of months. But now it seems the rally that started in early March has run out of steam. Many investors may ask themselves, was the recent rally for real, or merely a blip in a longer bear market? Since the bear market began in earnest last September, with the collapse of Lehman Brothers marking an important inflection point, there have been several global equity ...