Ashburton: markets close to "important low"

While he acknowledged the seriousness of the banking problems besetting the US economy, Lucas believes that the falls of last week do indicate that a great deal of bad news has already been factored into share prices, and takes heart from a number of positive signals. "When scores of investors want out 'at any price', it is usually a sign that we are approaching an important low," he said. Secondly, Lucas pointed out that the Vix index - which tracks the cost of stock options - had spiked to a new high for the year, and last week it rose to levels not seen since 2002. He added: ...