Summer sun does not mean the next bull market is here

The summer idyll continues. Bathed in dreamy sunshine, equity markets drift higher, while bond yields drift lower. UK house prices continue to float aloft and sterling softens like picnic butter. In such a benign environment, weakness feels like well-deserved indulgence. After what has been a torrid few months by any standards, investors are grabbing the opportunity to loosen up and chill out. There is plenty of negative news around but its impact is muted, wrapped in phrases like 'disappointing' or 'below expectations'. Like the post-Iraq rally, which was supposed to light the touch pape...