Divergent performance brings big bear into the smaller bear market

We are closing in on the anniversary of the 2007 peak of the market in both Europe and the UK. At th...

We are closing in on the anniversary of the 2007 peak of the market in both Europe and the UK. At the same time, we are testing the market lows seen in January and March this year. The credit crunch started unfolding with problems in money market funds and credit funds that were heavily exposed to rapidly souring sub-prime mortgages. This has cascaded into a broad credit crunch and pressure on the banking system around much of the world. With economic growth slowing, expectations of earnings growth have fallen sharply. Discounting this expected fall has put downward pressure on the mark...