For those of you who love conspiracy theories…of particular interest over the last few months has been the resurgence of the banking sector from the lows in March. Perhaps the fact that bankers were forced to take much of their bonuses in Stock rather than cash had something to do with this? Bonuses are generally paid in March, coincidentally the low point for most bank shares. If I was, say, a Barclays employee it would have been very nice to pick up stock options down at around 70p (price now 240p). In conversation with an investment banker friend of mine he was rather chuffed to discover that, at current valuations, his bonus this year is now worth far in excess of anything he received in the past. Admittedly he must wait a few years to cash it in. Ah well, ‘plus ca change, plus c’est la meme chose’. Also see today’s Spread Trading Comment. Good luck! DB