Equity markets have started 2009 in buoyant mood. The rationale seems to be that the worst is over and, even if it isn't, the bad news is now in the price. But this approach fails to take account of the gigantic change in household behaviour and monetary conditions that are ongoing in the global economy. The bad news is that the world is now a changed place and the old investing metrics no longer apply. In ExposAsia No 1/2009 (Rien Ne Va Plus) we take a closer look at the bets being placed on Asian equity markets at the moment and conclude that they belong to the era of excess capital and above trend growth.
