Belfast Telegraph

Friday 25 July 2014

Beware of the bull in market run

David Elliott, Business Editor
David Elliott, Business Editor

Hang on a minute. Didn't we just hear the Bank of England, which is charged with holding tight to the UK's purse strings, tell us we're firmly on the road to recovery?

Maybe so but it appears monetary policy committee member Paul Fisher wasn't in complete agreement with that view.

He's warned we're a 'long way from reality' and need to keep our heads down and work hard to make sure we don't fall back into the pit of recession.

As he was saying that, the usual ream of conflicting economic information was flooding in to muddy the waters even more.

Taoiseach Enda Kenny declared the Republic will leave the European Union bailout fund without any call for a credit line at the end of the year.

As our biggest export market lies across the border that's good news for us but is well and truly countered by news from other parts of the Eurozone.

Economic growth across the zone slowed to a near halt of just 0.1% over the summer with France's economy actually shrinking by the same amount.

Even Germany, thought to be the stalwart economy of the region, saw its economy grow by only 0.3%.

So before we get too carried away with what some are saying is a buoyant economy, it's worth realising we shouldn't be getting too carried away.

We should be bullish, of course.

But if we've learnt anything from the credit crunch and downturn of the last few years it's to question everything in the world of economics and don't get carried away with the hubris that tends to accompany bull markets.

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