The recovery in global share markets continues, and experts like Alan Kohler have been calculating price earnings ratios and looking cheery on national TV. But some serious thinkers are fretting about hedge funds, adding to the sense of concern created recently by Buttonwood from The Economist.

Henry Thornton’s writer, Ray Block, adds his unique insights. “Fast forward to the beginning of May 2005, when risk on investment products is still priced too low, the financial markets are awash with liquidity, government bond yields are low and the yield curve is almost flat.”

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