Bargains still exist in the equity market

ON THE US

Alliance Trust's Matthew Strachan says QE2 has not lifted all stocks equally

With the recent backing up of bond yields, the much anticipated second round of quantitative easing by the Fed looks to have been more than anticipated. If the epicentre of US woes lies in its housing market then mortgage rates, priced off 10 and 30 year bond yields, have not benefited current or prospective homeowners. Indeed DR Horton, one of the largest house builders in the US has predicted a tougher outlook for 2011 than this year. The issues surrounding improperly filed foreclosures have put another stick in the wheel of clearance, but beneath the surface the housing market i...