Tides turn in the USA

The US equity market has experienced an about-turn and is offering investors a wealth of opportunities, writes Mark Piper, co-fund manager of the Collins Stewart Select Opportunity fund.

Towards the beginning of 2011 it became clear the tides were turning and it was an appropriate time to tactically reduce exposure to Asian and emerging market equities and raise allocation to western equity markets. While there remains a strong case for the secular growth trends of many emerging economies and the likely strong performance their equity markets will enjoy as a result, as year end 2010 approached a number of warning signals pointed to a short-term reversal in fortunes of many of these markets. These included rising inflation pressures, more restrictive monetary policies and...