Financial Times FT.com

Fundamentals driving asset prices

By Larry Hatheway

Published: November 16 2009 17:35 | Last updated: November 16 2009 17:35

The assertion that recent gains in global equity, credit and most commodity prices have been primarily driven by “easy money” is not supported by data on leverage and financial flows, says Larry Hatheway, economist at UBS.

“Instead, we believe price gains largely reflect improved fundamentals, including signs of global economic recovery, the strength of emerging economies, and a recovery of earnings,” he says.

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