US recovery postponed to early 2002

The last few weeks have seen a range of responses from UK and global markets, as markets dived, were...

The last few weeks have seen a range of responses from UK and global markets, as markets dived, were probably oversold and finally saw a slight rebound compounded by the start of military action in Afghanistan. In this sort of environment, managers need to be careful ' a market where profit warnings lead to large sell-offs can rapidly see patiently accumulated gains quickly eroded. It is immediately obvious that risk aversion and volatility have increased. The number of FTSE 100 stocks moving by 5% or more in each trading day is back to levels seen at the peak of the tech bubble. We we...