US-based fund managers more optimistic on recovery

Fund managers in the US have become more optimistic over the state of the US economy and markets, according to Hans Hamre of multi-manager specialist FundQuest.

Hamre says evidence of a recovery in corporate earnings has led to widespread recognition the US economy is on the mend. Inflation is unlikely to cause problems in the immediate future as wage growth and interest rates remain low while the weak dollar is boosting companies' global market share. This is prompting a renewed optimism amongst managers, Hamre says. His comments come after a recent trip to the US where he met with a number of prominent equity managers. From 9 March to early December, the S&P 500 index shot up 65% but Hamre agrees with the more bullish managers that eq...