I just came back from a Europe research trip and the general business environment looks OK – there is light at the end of the tunnel. But the ECB continues to drive quantitative easing and all it seems to be doing is affecting European bank liquidity (RBA take note?). It seems to me that the market isn’t positioned for the business environment improving. The market is stretched – some sectors are very expensive, others very cheap. Middle of the road investors are going to find it hard, but exciting times for those ready to back themselves.