The equities rally may largely be the result of banks using bailout cash to buy up shares, and could therefore be subject to a substantial correction if the banks opt to cash-in and start selling. This is the bearish view of hedge fund Moonraker Fund Management on why global equities indices have risen so dramatically over the past few months.

The equities markets have soared in recent months, despite low trading volumes and what Moonraker sees as an apparent reluctance on the part of institutional and retail investors to put their funds into shares. The FTSE 100, for example, has rise by 45% since March.