After a 240-point fall on the Dow, people are expecting a bounce.

After the bubble in the tech sector this spring, I expect the shares to get positively cheap before people start buying again, and we aren't there yet. My view is that we have more downside to come.

The American numbers showed the people who had been getting nervous about interest rates may now think we may be overdone.

It's all part of the pattern we've seen since the New Year. We had an extraordinary end to 1999 and we started the year by blowing some of the froth off.

Markets are still trying to firm up where rates will peak in the U.S. and Europe.

I would sign up for the view that industrial, 'old economy' stocks could well be the next to move higher. But I don't see a definitive move until we see some of the economic data in July.