Category: Daniel Murray

Market action of the past few weeks has been exceptionally volatile, albeit less so than at the depths of the financial crisis in the fourth quarter of 2008 when Lehman Brothers filed for bankruptcy. The banks are once again at the centre of this storm, with the focus having shifted from US to European financial institutions. Human beings have evolved over thousands of years to react to such extreme situations via the “fight-or-flight” response. Long term valuation data point to the likelihood of weak bond market returns and higher but still modest equity market gains.