So far it is the US that has led global markets in performance this year, finishing the first half of the year up 9.5%.
This resilience has been in the face of a slowdown in global activity and a significant reduction in Q2 earnings expectations. However, despite this outperformance, there are worrying signs in the land of the free. The economic picture is becoming more problematic and valuations are now looking stretched compared to UK and European indices. The Federal Reserve recently extended its ‘Operation Twist’ but stepped away from any more substantial QE. This was disappointing as the market was hoping to see a catalyst for an equity rally, but also a little ironic as the US has outperformed thi...
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