They have still not learned…

Sunday, April 5th, 2009

No comment required. PortConsult Dr.Okresek offers an entry from the Lex Column of the Financial Times, there is nothing more to say:

It is the trash that has done best. Over the past month, while the FTSE All-World index has roared ahead by a quarter, AIG’s share price has almost tripled while Citigroup’s has doubled. In Europe, highly indebted companies such as retailer Debenhams or house builder Taylor Wimpey have gained more than 100 per cent, as has Erste Bank, one of central Europe’s biggest lenders, and carmakers Fiat and Renault. This is not investment; it is speculation. It is also the hallmark of a bear market rally – a brief spurt when bad news is brushed aside before it comes crashing back.
That is likely when the reporting season begins anew…….