The market's fairly mute reaction to the banking rescue package suggests some feel it may not go far enough and investors should expect more turmoil to come, according to New Star's Guy de Blonay.
Blonay, manager of the New Star Global Financials fund, believes that while a more proactive approach from the UK Government and central banks has to be a positive, investors should not expect a quick fix. "This is not a crisis that can be fixed overnight," he said. "On a positive note, governments are now being a lot more proactive. This does however raise the question of why the market is not rallying on the back of this news and could suggest that these measures do not go far enough." Taking a broader perspective, Blonay believes that, ultimately, well-capitalised banks that surv...
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