Unpredictable equity prices force a rethink to strike up balance

Equity markets have entered a state of flux over recent weeks with energy and materials - sectors th...

Equity markets have entered a state of flux over recent weeks with energy and materials - sectors that provided shelter in the aftermath of the credit crisis - falling sharply while financials, the source of the meltdown, rebounded. The financials sector rallied from its lows as investors took advantage of attractive valuations on stocks that had been oversold. Few banks have avoided the discomfiture of announcing losses, writedowns and capital raising activity, but there are those whose risk departments clearly had greater foresight. Improving trends are particularly noticeable in some U...