Global recovery from crunch is expected to take several years

The scars from the credit crunch will take time to mend. However, we believe the healing process is...

The scars from the credit crunch will take time to mend. However, we believe the healing process is already starting, aided in no small measure by the major central banks. Interest rate cuts have been accelerating but for many market participants, the role of the US Federal Reserve in the rescue of Bear Stearns in March proved a turning point, giving a boost to confidence of equity investors globally, including in the UK. Real economy implications from the credit crunch and doubts about profit growth expectations are unlikely to dissipate quickly, tempering our enthusiasm for UK equit...