Government stimulus bridged gap caused by systemic risk

The stock market has travelled a long way since staring into the abyss in February.

The financial stimulus lifeline was large enough to bridge a gaping hole that took away the systemic risk of a global meltdown. That was February, so what do we think of the future now? Global economies have clearly shown signs of stabilisation with credit spreads coming in significantly. Companies across the globe took an immediate hatchet to headcount, inventories and bolstered balance sheets. As confidence grew in a more stable economic outlook, they have slowly begun rebuilding inventory levels in anticipation of an economic pick up. Expectations as to the strength of the recovery...