Shares won’t recover in a straight line and so more short-term volatility is likely. However, so far October is living up to its reputation as a “bear killer” month and we see the recovery as having further to go. Shares are cheap relative to bonds; monetary conditions are set to remain easy; this in turn should help see the global economic recovery continue; and investor sentiment remains negative such that it’s actually positive from a contrarian perspective. As such, share markets are likely resuming a broad rising trend. This includes the Australian share market, where we continue to see the ASX 200 rising to around 5500 by year-end.