S&P 500

The American stock market is having a good year. From its low point of 677 on 9 March 2009, the S&P 500 index has recovered by over 60%.

As investors came to work on September 15, 2008, we braced ourselves for the fallout from the news Lehman Brothers had filed the largest bankruptcy in history.

Several of the world's largest sovereign wealth funds already have announced reviews of their long-term ‘buy and hold' strategies with an idea to reducing fixed weights to stocks

In a post-RDR investment world, exposure to index funds looks likely to expand, increasing competition in this space

In a volatile and ever-changing investment universe, timing is of the essence

The S&P 500 has risen more than 40% since the lows witnessed earlier this year.

On a local currency basis, the FTSE World Europe ex UK Total Return Index has outperformed the S&P 500 Total Return Index since the March 2009 lows, reflecting the fact that European markets tend to be more sensitive to global growth.

Sentiment and certain macroeconomic data have recently improved and the risk of a prolonged global recession has eased.

The Dow Jones has fallen for the first time in three days as Consumer Price Index figures show the Fed's $1trn injection into the banking system has not led to faster inflation.

Equity markets have clearly benefited from a dramatic shift in investor sentiment since early March - when the prevailing fear was that what had been a painful recession could escalate into an even more painful and longer-lasting depression.