Investors hoarding cash and playing shy

Fund manager's comment

For most of 2003 and the first half of 2004, investors plunged into risk assets such as equities and...

For most of 2003 and the first half of 2004, investors plunged into risk assets such as equities and recovery shares, but over the past few months they have turned gun shy. Equity and bond markets are making little progress, held back by a host of concerns from excessive consumer debt to the fragile housing market and potential peak in corporate earnings. Investors seem to be trying hard to prove they have learnt the lessons of the past few years and are fully accounting for all potential negative events on the horizon. However, while many of the arguments are valid - economic growth is...