Are investors facing a 'bunny' market?

Eoin Murray, head of the investment office at Hermes Investment Management, questions how much of the recent market rally is grounded in reality.

Should an inquisitive interstellar traveller happen to land on Earth this week, it might take a cursory glance at the markets and conclude that the planet's economics appear to be in rude health. After all, since the brutal early year sell-off, oil has rebounded strongly, developed and emerging markets have rallied, and equity volatility is way below its long-term average. For now at least, the bears have been chased away. Yet the question remains: how much of this market rally is grounded in reality? Gruelling road to recovery Let's firstly look at the macro picture and check th...