Ruffer: The Fed is worried by the latest return of risk appetite

Ben Bernanke has successfully calmed markets' June nerves but is now concerned with how quickly risk appetite has returned, according to Ruffer investment directors Hamish Baillie and Steve Russell.

The pair said that Bernanke has succeeded in quelling investor fears that arose in June in response to his talk of 'tapering' QE. Global equities, bonds and commodities sold-off in response to talk of tightening monetary policy by the Fed. In their monthly note, Baillie and Russell (pictured) said that July "was characterised by soothing words from central banks." But they noted the speed with which markets have reverted to risk-on behaviour may concern the central bank. "Bernanke might feel that he has navigated this episode adeptly; he needed to fire a shot over the bows of sp...