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The Long View: Summer in the city could be sticky

By Philip Coggan, Investment Editor

Published: May 19 2006 18:22 | Last updated: May 19 2006 18:22

Something DID give. When I suggested last week that the buoyancy of asset markets could not be sustained, I did not expect to be proved right quite so soon.

But a downturn was inevitable for a number of reasons. The first was that a climate of fast-rising commodity prices, buoyant equity markets, relatively stable bond markets and tighter global monetary policy was inherently unstable. Investors would have to start worrying about inflation or growth.

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