Market has dealt well with rights issues and global growth

There has rarely been a dull moment this year. A 20% fall in the UK equity market by early March has given way to close to a 50% bounce.

With interest rates in the UK hitting 0.5%, a rational conclusion would have been that high yielding equities would have led this charge. This has however not been the case, as the FTSE High Yield Index has underperformed the FTSE Lower Yield Index by about 20%, and this represents the first disappointment of the year. The reason for this in my opinion has been the effect that unorthodox monetary measures, namely quantitative easing, have had on the market. The flood of liquidity provided companies with the confidence to conduct business again, after a six-month pause following the colla...