Investment Strategy: Sharks in the water

The response to the latest and by far the greatest US government rescue plan was jubilant – US stocks up 8%, oil up 14%. But it’s too soon for the all-clear on risky assets. True, this time really is different. This vast new plan makes the government’s priorities crystal clear – righting the sinking financial ship is first, and the rest nowhere. Also, a $700bn transfer from the government to the markets should be an immense tonic for asset prices. But hedge fund managers with itchy fingers nee...