Investment Manager’s Report: A bear market for bears?
This market has made fools of optimists. But as the evidence of recession in the UK and USA grows daily, we may be set to experience the first serious rally in this bear market. Are we encountering a bear market for bears? First, companies are priced, if they are cyclical, on the basis that they won’t last the winter, and in the case of growth companies, as if they will never grow sales and earnings again. Both are untrue.
