The European think tank Europe2020 express the view that activity in the bond and share market was driven not my fundamentals but by electoral politics. A good example of what they see as political intervention was the miracle revision of the employment figures which saw the publication of a very bad figure for job creation in September 2006 (51,000 whereas 120,000 were expected) coincide with an astonishing discovery that 800,000 had been created since the beginning of the year.

Combined with record bullishness not seen since December 1973 we should expect the market to roll over as the economy heads into recession. Market Mad says sell stocks for safety.

Get ready for the Global Systemic Crisis.