Caution is the watchword despite signs of recovery

Following the worst slowdown since the Great Depression of the 1930s, we may now be starting to see ...

Following the worst slowdown since the Great Depression of the 1930s, we may now be starting to see some tentative signs of recovery. US stock markets have posted their third-successive monthly gain, with the S&P 500 index achieving its largest three-month percentage gain in over 10 years from March to the end of May. However, there are still reasons for caution as recent figures have also shown consumer spending has dropped for a second month. This was on the back of concerns over rising unemployment and record wealth destruction and has prompted households to boost savings rates to the hi...