Email of the day (2)
Comment of the Day

October 28 2011

Commentary by David Fuller

Email of the day (2)

On yesterday's market comment:
"I trust bond analysts more than equity. The dog that didn't bark in the night: the Italian 10year bond is unmoved by all the orchestrated hot air."

David Fuller's view OK, but they are two different asset classes, and why buy sovereign debt of indebted countries when you can buy equivalent yields, or nearly, with companies which have earnings growth prospects and strong balance sheets? That said, even Italy could be OK when it moves beyond the Berlusconi era, raises the retirement age and privatises some of the country's numerous state holdings.

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