Recovery may prove to be just a reversal of trends post Lehman collapse

During the last three months the market has staged a strong recovery, with the FTSE All Share regist...

During the last three months the market has staged a strong recovery, with the FTSE All Share registering a gain of around 28% from its low point. The recovery has been led by economically sensitive sectors at the expense of defensive holdings. This rally has been based on the premise that the rate of decline in the global economy is slowing. While some economic indicators illustrate tentative signs of recovery, these may simply prove to be the reversal of some of the extreme trends witnessed in reaction to the Lehman Brothers bankruptcy. There are some substantial challenges that remai...