Wild gyrations in the stock market occur as govt action priced in

Unlike the London housing market that seems to rise every year, the stock market had another year of wild gyrations.

The period January to March was characterised by shares declining dramatically. Gloom dominated the media headlines and most fund managers were very defensively positioned or profoundly depressed. By this we mean fund cash levels were high and investments that were held, such as food manufacturing, pharmaceuticals and utilities, were cautious. To some extent this was true of our fund as well, although we never had high cash levels as this was inappropriate after markets had fallen heavily. Then it gradually became apparent to investors that although the consumer was in recession, swift g...