May 25, 2006 | posted by Michael Baxter in Uncategorized |

Money’s cheap. Does that means investors are being
silly? With the rate of interest in Japan still at zero, credit has never been cheaper.
And perhaps that’s the problem, or so Anthony Bolton, head of the Fidelity Special
Situations Fund and city guru, speculated.

Speaking at a press conference yesterday, he suggested that the recent run on the
markets is no flash in the pan, rather a sign of an end to the bull market. He said: “I
think it could be the end of the bull market - therefore the correction will take
months rather than days.”

“We could see a series of small corrections and recoveries over the long term or
we could see a sharper drop,” he said. “However, the quicker the downturn, the
smaller the consolidation will be.”
Why is all this happening? According to Mr Bolton: “‘Investors are prepared to
take more risks and that’s always a warning sign. Then you have factors, such as the
situation in the Middle East and bird flu, which could have an affect on the
markets#133;When money is virtually free, that’s when people do silly things.’
.