Schroders chief says rally not sign of recovery

The recent stock market run is a bear market rally, according to Alan Brown, group chief investment officer at Schroders.

“It is too early to declare victory and say we are necessarily in a bull market,” he said. “There are lots of promising signs and lots of reasons why the market should have rallied. I just think we need to be very cautious. We are going through a completely unprecedented period and the range of possible outcomes is still very wide.”
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He suggested it was more than coincidence that the market rally could be timed from when the Bank of England began its quantitative easing programme. “I’m concerned that the real power behind this rally is quantatitive easing, which isn’t going to go on forever.”