Have investors over-reacted to US volatility?

US equity markets have been volatile in 2014, but investors have over-reacted to the downside, says Joel Mittelman from the Boston Company Asset Management.

US economic growth for the third quarter of 2014 was revised upwards to 3.9%, from the 3.5% initially posted. I am optimistic the economy can sustain a 2.5% to 3% pace next year due to a number of reasons, but first, and most importantly, because the composition of growth remains healthy. Secondly, a significant drop in oil is an important catalyst behind business profitability and consumer spending, the latter of which drives roughly 70% of the US economy. The oil price has fallen more than a third from recent highs of $115 since June, firstly falling to trade around $78 and then lat...