Wave of fear to recede as corporate bonds and equities offer good value

If global stock markets represent a balance between fear and greed, then 2008 saw the pendulum swing...

If global stock markets represent a balance between fear and greed, then 2008 saw the pendulum swing firmly towards fear. The trigger point for this swing was the collapse of Lehman Brothers last September. Many investors suddenly did not want significant exposure to risk assets on their balance sheets. This led to a complete stampede out of these investments into perceived safe havens, such as gilts. The main theme for 2009, however, will be watching this wave of fear recede. Owing to the widespread economic downturn, it is reasonable to expect the global economy will suffer from a sever...