Is there sufficient appetite for a re-rating of US equities in 2016?

Americans are an optimistic bunch by nature. However, talk of secular stagnation, declining opportunities and faltering growth have become the topics de jour.

Perhaps it is a reflection of the political climate in an election year but these concerns have become imbedded not only within political punditry but also in the minds of investors. The US equity market has shown renewed volatility thus far in 2016, as investor sentiment has shifted to reflect growing concerns over monetary policy, emerging market growth and commodity price weakness. Reflecting the more cautious mood, investors bid up defensive companies in telecoms, utilities and consumer staples, and sell down growth sectors such as healthcare, technology and small caps. Understand...