David Bulteel

“Equity markets have made a strong start to the quarter while most bond markets have fallen. So far, weakness in the US housing market does not appear to have spread to a general slowdown, encouraging hopes of a soft landing for the world economy and for equity markets. Investors should be prepared for further tests of nerves as this adjustment period continues, but this is offset by the continued flow of merger and takeover deals, prompted by equity valuations which appear well supported if the downside fears for growth prove to be unfounded.”