Equities stabilisation drove the worldwide economic recovery

Last year saw remarkable stabilisation and recovery in equity markets which led the subsequent global economic revival.

As the fourth quarter came to a close, the global economy benefited from two trends: first widespread quantitative easing pumping money into the financial system to prevent the credit crisis from taking down the banking system; second the move by companies globally to cut costs as they readied for depression-like conditions. By the end of Q4 it was clear these moves had both shortened the length of the downturn and set the stage for recovery. Many companies now have cash to hire and spend – an important development at a time when unemployment threatens the stability of the recovery. Aver...