Tyndall - October 2009 Comment - An Unconvincing Recovery | RaboPlus Investor Centre

In practice, we have observed that there is often a tendency to assume that an equity market recovery does indeed signal an impending economic recovery, perhaps because rising asset prices seem to 'pressure' forecasters to move their anticipated growth numbers upward. We, however, are less convinced in the equity and the other financial markets' predictive powers, instead believing that there are other processes driving asset markets at present.

It has become very apparent over recent months that the global financial system, far from shrinking and becoming a mere 'utility' for the real economy as some believed that it would following last year's crisis, is once again expanding in size and if anything becoming further divorced from the real economies.

 Read the full Tyndall Comment.