Abate expects 'huge' reporting season rally

PSigma's James Abate says the US market has hit its trough and will not slump further this year, but is likely to see a "huge rally" in the reporting season.

Meanwhile, the manager has been increasing cyclical positions on the margin of his American Growth fund, rejecting the argument the US economy is flirting with a double-dip recession. "Looking at the macroeconomic environment, I could not disagree more with the naysayers. The restructuring we have witnessed is the most efficacious and broad-based I have seen in my career. We have seen profit increases, and the amount of room left to run here is enormous," he says. "The US market has already touched its lows for the year, and as companies start reporting, investors will wake up to the ...