Share markets have rallied in recent weeks. The US Dow Jones index is 12,910.02, up 11 per cent from its year’s low of 11,634.82 set on 22 January. The UK’s FTSE 250 index is 10,338.90, up 16.1 per cent from its year’s low of 8,903.4, also set on 22 January when the index traded in a range between 8,903.4 and 9,656 before closing at over 9,600.
Views remain sharply divided on whether this is a rally in a continuing bear market or the opening stage in a new bull market.
The key bullish fundamental is the emerging markets boom. Western economies may be in varying degrees of disarray but the Chinese, Indian, Brazilian, Russian and other emerging economies remain strong and seem to be in secular up trends with years, even decades, of supercharged growth still to come.
High demand for commodities
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