David Bulteel

“Equity markets have embarked upon another correction, as fears grew that credit problems in the US would spread elsewhere and undermine the merger activity which had contributed to their earlier gains. With central banks still sounding hawkish about the need for higher rates, markets fear an undue tightening of credit conditions. Provided that economic growth remains intact – and corporate profitability has so far remained robust – equity markets are likely to recover their poise, particularly if the volatility heads off the risk of higher interest rates.”