Selective approach will seek out value

After the valuation-induced bounce in markets at the tail end of 2001 and the Enron and accounting contagion of early 2002, markets are coming to terms with something rare ' good news. It seems clear that the massive monetary stimulus provided by the US Federal Reserve is having the required effect in the US and is providing the economy with the necessary fuel for a full-bodied recovery. This is being helped along by the recovery in inventories in the industrial sectors from the extreme lows of the fourth quarter. That the markets have rallied so sharply recently is partly due to th...