Strong rally shows worst of bearmarket has passed

While it is difficult to know whether a recovery is under way in the UK without more economic and geopolitical clarity, there are reasons for optimism coming from the US

The strong rally in equity markets during early October supports our view that the worst of the bear market is behind us. Similarly, the sharp fall in bond markets indicates that investors have lost some of their pessimism and are prepared to dip their toes in the more volatile equity markets. Unfortunately it is still too early to pronounce the death of the longest bear market since the 1970s. Not until we have a lot more clarity on the economic and geopolitical situation can we say for sure that the recovery is under way. Despite that gloomy reality check, there are good reasons for...