The superlative performance of major stockmarkets - in particular the US - in recent weeks has disguised the concern of investors which are focusing on the underlying factors bearing on the economy, the health of the corporate sector and the outlook for interest rates. "The fact that the Dow Jones Industrial Average moved through its highest barrier this week means nothing to broad-range investors," says one head of equity capital markets at one of the top three firms. "It simply shows that this index has become so narrow and concentrated that it bears no relation to the underlying demand for stocks in the market."
March 12, 1999
