Fourth bounce for FTSE World index

Since its low point on 12 March the FTSE World Index has recovered by 16%, making this the fourth ra...

Since its low point on 12 March the FTSE World Index has recovered by 16%, making this the fourth rally since 11 September 2001. The three previous rallies, in autumn 2001, summer 2002 and autumn 2002, were turned back by a relentless tide of poor economic and business news. The flames of hope were quickly snuffed out, leaving the bear market to resume its course. Why should we expect things to turn out differently this time? First, the formal military campaign in Iraq has been completed without, as yet, any resurgence in terrorism. The price of oil, which briefly threatened to top $40 pe...