Focus on the fundamentals

Investors cannot have failed to notice that the capital markets are violently 'zig zagging' month by month at the moment, rendered directionless overall by the ongoing banking sector crisis. Risk aversion reached rather elevated levels at the end of the first quarter, as the world held its breath to see whether the big investment banks would tumble like dominoes. In the end, the US Federal Reserve rode to the rescue and unabated collapse was prevented, but this resulted in the reversal of the most popular trade of 2008, as investors sold down commodities in favour of other paper assets. ...