Systemic risk to financial fears look unlikely to be realised

For an investment manager, rising equity markets are most welcome.

The 23% rise in the FTSE All Share since the lows of early March is more welcome than most, suggesting the low point in this bear market has passed. Stability is returning to the global economy, credit markets have started to function again, and fears of systemic risk to financial systems look unlikely to be realised. Meanwhile, governments have responded with unprecedented fiscal and monetary stimulus to generate some measure of economic recovery. The market’s rise has been led by financials and cyclical stocks. Companies have been raising significant amounts of capital, which has gener...