Fundamentals to return as key driver for the US markets

When Lehman collapsed money markets froze, businesses went bust, interest rates were slashed and quantitative easing was implemented on a massive scale.

Then in March 2009, something remarkable happened – the US equity market actually rebounded and despite a few wobbles continued on an upward trajectory. Around the world confidence in monetary authorities was restored and quantitative easing, the biggest monetary experiment in history, was hailed a success. In 2009, the US emerged from one of the deepest recessions experienced since the Great Depression. So what happened? In May 2010 the rally in US equities came to a screeching halt, despite economic data pointing towards a broadening US economic recovery. Uncertainty over the first ...